Hawai'i has dropped from third highest in the nation in the cost of workers' compensation premiums to 15th over the past four years, the state Department of Labor and Industrial Relations said yesterday.

The department also reported that workers' compensation premiums have dropped to their lowest prices since 2003 for employers insured through Hawaii Employer Mutual Insurance Company, the state's largest workers' compensation carrier.

In a ranking compiled by the State of Oregon's Department of Consumer & Business Services on how the states compare in terms of employer spending on workers' compensation premiums, Hawai'i dropped from third highest in 2002 to 15th highest in 2006, according to a news release from the state Labor Department.

This trend correlates with data provided by HEMIC at its annual governance meeting, the department said. In 2003, Hawai'i businesses insured by HEMIC on average paid $5.36 for every $100 dollars of payroll for workers' compensation. In 2006, on average those businesses are now paying $4.49 for every $100 of payroll.

"This trend is a direct result of the decrease in injuries filed and the internal changes initiated by the Department of Labor and Industrial Relations," said Bob Dove, HEMIC president and chief executive.

"Many of those initiatives we have experienced are an improved administrative process, a level playing field when dealing with employees and employers, unbiased decision-making and prompt hearings and resolution of claims that are heard at DLIR."

Since 2002, workers' compensation claims have steadily decreased, according to the DLIR. In 2005, 28,018 claims were filed, down from 29,757 claims in 2002.

Since December 2002, more than 60,000 new jobs have been added to the economy, with a large portion of those jobs in the construction industry.