Report Recommends Raising Workers’ Compensation Premiums
The report represents a non-binding recommendation for insurers (Walters, "Capitol Alert," Sacramento Bee, 8/12).
In September 2012, Gov. Jerry Brown (D) signed into law a bill (SB 863) that overhauled the state's workers' compensation system.
The law -- by Sens. Kevin de León (D-Los Angeles) and Jose Solorio (D-Anaheim) -- changed the formula used to calculate benefits for injured workers, increasing their compensation by an average of 29%.
It also eliminated benefits for certain health conditions that often are subject to lawsuits, such as psychiatric problems, sexual dysfunction and sleep loss.
The State Compensation Insurance Fund said employers likely will pay less for workers' compensation insurance under the law.
Details of Report
Despite expected savings under the law, the WCIRB report found that premiums for workers' compensation insurance should increase to an average of $2.62 per $100 of payroll.
However, the bureau said the estimate could change if the state Division of Workers Compensation adopts a new payment schedule for health care providers who treat individuals with workers' compensation insurance.
California Insurance Commissioner Dave Jones (D) is expected to comment on the report and release his own rate recommendation ("Capitol Alert," Sacramento Bee, 8/12).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.