Workers' Comp Rate Increases

Make The News...

As we first mentioned in a previous newsletter, workers' comp rates in California are poised to increase in 2011.  In August, a state government rating authority (WCIRB) announced that it was recommending a 27.7% rate increase to the Department of Insurance ("DOI").  Regardless of the WCIRB's recommendation, the DOI has the final say as to insurer rate advisories and its conclusions are influenced as much by political and economic factors as by insurance statistics.

Despite recent media articles about a 27.7% rate increase, Risk Concepts still believes that the average 2011 rate increase will settle in the range of 10% to 15%.  The California political and economic landscape remains too unsettled and unpredictable for employers to absorb a dramatic rate increase and this will ultimately act as a buffer against statistical reasoning.  The attached link to a 10/12/10 article in the San Francisco Chronicle provides a well written synopsis of the background to the projected rate increases.  Please give us a call with any questions regarding this or any future media announcements.

Please click here to read "Trouble brewing in workers' comp system"

As a business owner, you may have heard the buzz about "Grandfathered" health plans.  The following article is a good piece that will help clarify what it is, and why it was added to the Patient Protection and Affordable Care Act (PPACA). 

As always, I will be available to discuss this with you, and to review your specific needs.