Despite a 22.8% recommendation from the Workers' Compensation Insurance Rating Bureau of California there will be no official pure premium rate increase.   Insurance Commissioner Steve Poizner moments ago announced that he was - for the second time - rejecting WCIRB’s recommendations regarding the workers' compensation claims cost benchmark (AKA the pure premium rate).

The rate is only advisory and carriers are free to file and use their own rates. Most carriers have, are, or will be filing increases.

"I am disappointed that the WCIRBs' current rate filing fails to provide any analysis of the information generated at the Department's investigatory hearing on June 8th," Poizner's decision maintains, noting that the hearing resulted in 27 recommendations that were not reviewed by the WCIRB. "The filing fails to adequately discuss or address to what extent those costs are avoidable or how that can be determined."

Poizner also faults the WCIRB's analysis of the potential impact from the Workers' Compensation Appeals Board's decisions in the recent permanent disability cases. As in its earlier filing, the WCIRB is attributing 5.8% of the increase to the cases.

"I am in agreement with my staff's assessment of the WCIRB's inadequate submission on permanent disability cost increases resulting from the WCAB decisions in Ogilvie and Almaraz/Guzman. The WCIRB has the burden and responsibility to provide adequate and substantial analysis and support for its rate filing," the decision notes. "As is pointed out by my staff, the WCIRB continues to make many assumptions and temper its estimates rather than trying to thoroughly evaluate the cases or use existing data."

In releasing his decision, Poizner maintained that he is unwilling to approve an increase when cost control measures from the reforms are still to be implemented.

Stay tuned for additional coverage.

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