Largest Workers’ Comp Insurer Plans 5.2% Rate Increase for Next Year
The State Compensation Insurance Fund -- California's largest provider of workers' compensation insurance -- recently announced a 5.2% rate increase for policies renewed or started after Jan. 1, the Orange County Register reports.
Every employer with at least one workerÂ must purchase workers' compensation insurance to cover medical care for on-the-job injuries. The State Fund provides coverage to 80,000 California employers.
Rate Hike Details
The State Fund said its scheduled rate increase reflects inflation in claims costs.
State Fund President and CEO Tom Rowe said in a statement that the fund consulted with industry groups and brokerages while setting the new rates.
The fund's rate hike is lower than the 27.7% increase recommended by the Workers' Compensation Insurance Rating Bureau, an industry group that represents workers' compensation insurers (Norman, Orange County Register, 11/12).
Survey Ranks California's Workers' Comp Costs
Meanwhile, a recent survey by the Oregon Department of Consumer and Business Services found that California has the fifth most costly workers' compensation system in the country. California ranked ninth in the group's 2009 survey.
According to the survey, workers' compensation insurance in California costs an average of $2.68 per $100 of payroll, which is 31% above the national average of $2.04 per $100 of payroll (Walters, "Capitol Alert," Sacramento Bee, 11/15).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.