Work Comp this year has been quite a challenge. Increases in premium have been rather prevalent for our clients. In some cases, we’ve found it advantageous price-wise to move some clients to the State Fund (SCIF). Although SCIF is supposed to be the insurer of last-resort, we’re also seeing cases where they are also the least expensive.
- California has the highest Work Comp rates of any states as of January, 88% higher than the median rates of the nation.
- California is in the top 3 states in medical costs per claim.
- Experienced double-digit increases in premiums over the last two years and more increases were filed for 2015 of 1.5% to 9.8%.
- High frequency of claims relative to payroll. Los Angeles county is the worst in this regard.
SB 863, which was intended to address some of the causes of the increases in cost, was signed into law on Sept 18, 2012. A recent panel was divided as to whether or not the reforms have been successful. Some costs have seen reductions while other have not.
The current state of California workers’ compensation and a look forward