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Donna Eyman: Workers’ Comp Insurance Bureau Recommends Rate Hike
The Workers’ Compensation Insurance Rating Bureau of California, or WCIRB, has recommended a 22.8 percent increase for policies written or renewed after Jan. 1, 2010.
State Insurance Commissioner Steve Poizner opposes the proposed rate increase, saying that California employers simply can’t afford the increase given the weakness of the economy and the state’s high unemployment rate.
“This effectively would be a tax on every employer in the state of California to cover the cost of workers’ compensation insurance,” Poizner said. “As rates go up, it will definitely make our unemployment grow worse.”
California’s unemployment rate was 12.2 percent, according to September figures.
Workers’ compensation rates have fallen by more than half in the past six years. Poizner suggests that insurance carriers focus on improving the efficiency of their operations and cutting claims handling and medical costs rather than raising rates.
The WCIRB came up with its recommended increase after reviewing the costs of handling accident claims in the 12 months before June 30. It also focused on a potential effect of changes in statistical reporting and two cases pending before the Workers’ Compensation Appeals Board.
Poizner’s recommendation not to increase rates is not binding, but many insurance companies generally follow the commissioner’s lead.
— Donna Eyman represents Eyman Parker Insurance Brokers Inc. and James G. Parker Insurance Associates Inc.
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» on 11.15.09 @ 03:03 PM
The increase is not because the injured worker is sharing in it, but because the wages of the administrative executive are falling behind the wall street money handlers.
In fact, unless you are injured you will never know that that an injured worker cannot obtain medical treatment recommended by your treating doctor until a doctor who does not examine you decides that the recommended treatment is acceptable. Of course , that opinion is at least 3 weeks away , and if you are really suffering maybe several weeks and sometimes months away.
Does the industry need an increase in rates? In my opinion, not until they start employing trained adjusters who can assess the need for treatment without going out for a non examining opinion (which increases the cost of medical treatment) and delays that treatment for unreasonable lengths of time.
» on 11.15.09 @ 04:37 PM
The employers are already way over-charged, and this is terrible for California—I know many companies that are looking for one more tax increase or insurance hike to move—Workers comp is a big scam that was created for severve injuries, but now if you get a splinter you go to a sleezy attorney, or blame your high school injuries on your company.
The W/C ststem is currupt—get rid of the bottom feeders—Attorneys, and lower the rates.Create jobs—dont destroy them..
» on 11.15.09 @ 05:41 PM
Claims must be managed immediately from the point of injury. Supervising management has to have the ability to make one call to initiate their Claims Management program.
Most employers do not have a program in place and must find a resource for one.
If the employee is hurt, take care of them and move them rapidly back health and working again. If there is doubt in the claim, have your team working for you to investigate to all means necessary.
A multitude of cost with Workers’ Compensation is the lack of a defined response program.
Eric Mowrey
» on 11.15.09 @ 07:16 PM
The liberal nanny state of california, and the lack of tort reform is the reason workers compensation cost are destroying jobs. Especially Calif..
We are all victums—dont you know that. Its never your fault—Liberalism.. mad at your boss file a phony claim..its that easy…
Rates need to drop by 50%—that will be good for jobs..
» on 11.16.09 @ 05:11 PM
Although it is likely that Steve Poizner will again attempt to hold the line against first of year rate increases, if for no other reason than his run for governor, there is an 800 lb. gorilla in the mix this year.
The State budget compromise calls for a spinoff sale of State Fund in the amount of $1 billion. The catch is that the State Fund board of directors is resisting the sale of the Fund’s most profitable assets, making it far less likely that a buyer will be found for the Fund’s extensive portfolio of high risk businesses.
As medical and other claim costs continue to outstrip revenue, a perfect storm of rate increases and coverage scarcity for high risk businesses such as roofers and other construction classes is on the horizen. At worst case the result will be a return to the excessively high rates of 6 years ago and many businesses may choose to ignore the law and go without coverage.
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