Dear ,
Workers' compensation is back in the news and back on the legislative agenda in Sacramento. We wanted to provide you with a brief update. Insurance Rates Hold Steady Average workers' compensation insurance rates during 2009 remained steady with rates charged in 2008, and medical and benefit costs per claim increased by smaller amounts than in recent years. These are some of the findings made by the Workers' Compensation Rating Bureau (WCIRB) in its most recent analysis of workers' compensation insurance in California.
Last year, average insurance rates were $2.35 per $100 of payroll, compared to $2.37 per $100 of payroll charged in 2008. Benefit and medical costs per claim appear (at this early stage) to have increased by 4%, which is much less than the 13% increases seen in each of the past three years.
Based on its finding that 2009 costs were consistent with its previous studies and rate recommendations, the WCIRB announced last week that it would not recommend a mid-year change in workers' compensation insurance rates. As always, individual insurers are not bound by either the WCIRB's recommendation or the Insurance Commissioner's "claims cost benchmark," and must charge sufficient premiums to cover claims filed by injured workers. Costs do continue to increase for both insured and self-insured employers due to higher medical treatment costs and the impact of recent court cases on claims with Permanent Disability, both of which have started to push rates upward. Legislative Day Success
Thanks to all of you who attended our Workers' Compensation Legislative Education Day. We saw our biggest turnout ever, as nearly 80 employer advocates from around California descended on the State Capitol to discuss workers' compensation issues with more than 90 legislative offices. We discussed the ongoing uncertainty raised by the Alamaraz-Guzman and Ogilvie court decisions, as well as the importance of keeping the 2003/2004 workers' compensation reforms in place to protect our economy and save jobs. We also shared thoughts on two specific pieces of legislation currently pending in the State Assembly - you can click on the bill numbers to find information about AB 1994 (Skinner) and AB 1603(Solorio). If you couldn't make it, think about next year! |
