Two years ago this week, Governor Jerry Brown signed SB 863. This legislation significantly increased injured worker benefits and sought to offset the cost of these higher benefits through changes to improve system efficiency, reduce conflict and litigation, and stem abusive practices. How are the reforms working? An assessment from the state�s Division of Workers� Compensation found both �progress� and �challenges� in SB 863�s implementation and impact on the system. The study found that:
Overall, officials found that �it is still too early to gauge the overall effect of the SB 863 reforms.� Not included in this assessment is the threat that pending lawsuits challenging the IMR and lien reforms could have on the reforms and projected cost savings. As always, you can check out WCAN�s 14 by �14 page to track the reform�s progress, including our updated infographic on SB 863. How are the reforms impacting the overall system? A broader look at the �State of the System� from the Workers� Compensation Insurance Rating Bureau found that California remains an expensive outlier when compared to other states. The analysis found that:
While reforms continue to be implemented, California employers can expect to continue to see rising workers� compensation costs. The Worker�s Compensation Insurance Rating Bureau recently proposed an additional 7.9% increase in the advisory pure premium rate for January 2015 compared to average rates filed as of July 2014. If the average rates employers pay rises accordingly, employers will have experienced a 44% percent rate increase since 2009. Please contact us with any questions or comments at [email protected].
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