Workers’ Comp Rating Bureau Recommends 8.7% Rate Increase
Last week, the California Workers' Compensation Insurance Rating Bureau recommended increasing workers' compensation premiums by 8.7%, the Sacramento Business Journal reports.
The higher rate would include a 1.8% increase to cover predicted increases in physician fees under a new state law (SB 863) that adjusts how physicians are paid through the workers' compensation system (Rauber, Sacramento Business Journal, 10/28).
In September 2012, Gov. Jerry Brown (D) signed SB 863 into law.
The law changed the formula used to calculate benefits for injured workers.
SB 863 also requires the state to base workers' compensation fees on Medicare's method of paying physicians.
Earlier last week, a WCIRB actuarial committee made a recommendation to increase rates by 9.5% (California Healthline, 10/23).
Details of the Recommendation
The recommended 8.7% increase would be applied to the "pure premium" rate. Under the recommendation, such premiums would increase from $2.53 per $100 of payroll to $2.75.
California Insurance Commissioner Dave Jones (D) has scheduled a hearing for Tuesday to discuss the group's recommendation.
Jones can accept, reject or change the recommended rate increase (Sacramento Business Journal, 10/28).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.