Workers’ Comp Rating Bureau Panel Recommends 9.5% Rate Increase
On Monday, the California Workers' Compensation Insurance Rating Bureau's actuarial committee recommended increasing workers' compensation premiums by 9.5%, according to a trade journal report, the San Francisco Business Times' "Bay Area BizTalk" reports.
The potential increase is a response to a state law (SB 863) that adjusts how physicians are paid through the workers' compensation system (Rauber, "Bay Area BizTalk," San Francisco Business Times, 10/22).
In September 2012, Gov. Jerry Brown (D) signed SB 863 into law.
The law changed the formula used to calculate benefits for injured workers (California Healthline, 8/13). SB 863 also requires the state to base workers' compensation fees on Medicare's method of paying physicians.
Details of Recommendation
On Monday, the WCIRB actuarial committee made the recommendation to increase rates by 9.5% to the bureau's governing committee. The rate increase is higher than the actuarial panel's previous recommendation of a 7.6% increase.
The governing committee is scheduled to consider the increase on Wednesday.
While it is not required to accept the recommendation, the committee likely will do so, according to "Bay Area BizTalk."
The recommendation then would be sent to California Insurance Commissioner Dave Jones (D) for consideration during a hearing on Oct. 28. Jones can accept, reject or change the recommended rate increase.
If the increase is approved, California employers could face higher workers' compensation rates in January 2014, "Bay Area BizTalk" reports ("Bay Area BizTalk," San Francisco Business Times, 10/22).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.