Workers comp rates for code 8856: Adult Day Care
NCCI class code 8856 covers Adult Day Care in the healthcare industry. The median rate across 17 states is $0.310 per $100 payroll. Rates range from $0.090 in Utah to $0.780 in Hawaii.
Also known as: Adult day services · Senior day care
Cheapest 5 states for code 8856
What does NCCI class code 8856 cover?
Class code 8856 classifies employees performing Adult Day Care, also known as Adult day services, Senior day care. The NCCI classification system groups occupations by similar workplace exposure, loss-experience patterns, and operational characteristics. Code 8856 falls within the healthcare industry group and is filed in 17 states.
NCCI's governing classification rules state that a single-classification employer with at least 51% of payroll in this occupation generally classifies all employees under code 8856, with two standard exceptions: clerical office work (segregated payroll records required, reported under code 8810) and outside sales / collectors (code 8742). If your operation has multiple distinct activities, ask your underwriter about a multi-class split before accepting a single-code rating.
Why rates for code 8856 vary so widely across states
The rate spread for code 8856 is 8.7× from cheapest to most expensive ($0.090 in Utah to $0.780 in Hawaii). This isn't randomness, it reflects each state's claim experience for the occupation over the most-recent 5-year window NCCI uses, medical inflation in that state's hospital/clinic market, indemnity (lost-wage) cost levels driven by state maximum weekly benefit caps, and rating-bureau methodology. Independent-bureau states (California's WCIRB, New York's NYCIRB, Pennsylvania's PCRB, New Jersey's NJCRIB, Massachusetts's WCRIBMA, Delaware's DCRB, Wisconsin's WCRB, North Carolina's NCRB, Texas's TDI) often diverge significantly from NCCI's national pure premium, sometimes by 30% or more on the same occupation. Monopolistic-fund states (Ohio, North Dakota, Washington, Wyoming) don't allow private carrier competition, so the state fund's pricing is the only available option.
How to use this code 8856 rate data
- Benchmark your carrier quote. A carrier quoting code 8856 above the $0.370 75th-percentile rate is asking for a premium-rated quote, push back or get a second quote.
- Identify the right state filing. Use the table below to find your state's filed rate. If your carrier is quoting at a higher rate, the difference is either schedule debit, EMR, deductible loading, or a state-fund surcharge, ask which.
- Calculate your effective rate. Effective rate = base rate × EMR ± schedule credit/debit ± deductible loading. Two carriers quoting code 8856 at the same base can vary 30%+ on effective rate after these adjustments.
- Consider lower-rate states if locationally flexible. For code 8856, Utah ($0.090) is 88% cheaper than Hawaii ($0.780). Multi-state employers split payroll by state-of-work, not state-of-headquarters, so locating the high-payroll site in a cheaper state directly lowers premium.
- Build a 3-year EMR strategy. A 0.85 EMR cuts base rate by 15%; the difference between 0.85 and 1.25 EMR on the same code is a 47% premium difference. Frequency control (preventing every claim, even small ones) drives EMR more than severity control.
Code 8856 rates in all 17 states
| State | Code | Rate per $100 | vs peers | Source |
|---|---|---|---|---|
| Utah | 8856 | $0.090 | 6% | view |
| Kansas | 8856 | $0.140 | 12% | view |
| Tennessee | 8856 | $0.170 | 18% | view |
| Oregon | 8856 | $0.210 | 24% | view |
| Kentucky | 8856 | $0.240 | 29% | view |
| Alabama | 8856 | $0.270 | 35% | view |
| Arkansas | 8856 | $0.290 | 47% | view |
| Maryland | 8856 | $0.290 | 47% | view |
| Minnesota | 8856 | $0.310 | 53% | view |
| Rhode Island | 8856 | $0.320 | 59% | view |
| Illinois | 8856 | $0.336 | 65% | view |
| Indiana | 8856 | $0.350 | 71% | view |
| Oklahoma | 8856 | $0.370 | 76% | view |
| Alaska | 8856 | $0.390 | 82% | view |
| Louisiana | 8856 | $0.400 | 88% | view |
| Nevada | 8856 | $0.460 | 94% | view |
| Hawaii | 8856 | $0.780 | 100% | view |
Bottom quartile (cheap) Mid Top quartile (expensive)
What types of claims drive code 8856 rates?
Workers comp rate filings for code 8856 reflect what's actually happening on the job, not just generic occupation hazard. NCCI publishes loss-cost analyses showing which injury categories account for the bulk of indemnity (lost-wage) and medical claim cost. For Adult Day Care, the top drivers are typically:
- Patient-handling injuries, lifting and transferring patients, drive 35-50% of healthcare claim cost.
- Workplace violence, increasingly cited in ER, behavioral health, and long-term care, is the fastest-growing healthcare claim category.
- Sharps and bloodborne pathogen exposure, including needlestick injuries, produce long-tail surveillance claims.
- Slips, trips, falls on wet floors are persistent frequency drivers.
Targeting these drivers in your safety program produces the largest EMR improvement. Frequency control (preventing every claim, including small medical-only incidents) drives the modifier more than severity control. A documented written safety program addressing the top two drivers above is typically the highest-ROI intervention for employers paying for code 8856.
FAQs about NCCI 8856
What occupation is NCCI class code 8856?
Class code 8856 is "Adult Day Care" (also known as Adult day services, Senior day care), in the healthcare industry. The code is filed in 17 states.
What is the average workers comp rate for code 8856?
The median rate across 17 states is $0.310 per $100 of payroll, ranging from $0.090 (Utah) to $0.780 (Hawaii).
Why does code 8856 cost more in some states than others?
Workers comp rates reflect each state's loss experience for that occupation, the rating bureau's methodology (NCCI vs. independent), schedule rating credits, and the state's medical-cost inflation. Some states are monopolistic (only the state fund writes coverage) while others are open competitive markets.