Workers’ Comp Cost, Benefit Ratios Continue to Decline

Employers across the nation paid an average of $1.17 per $100 of payroll to provide workers’ comp benefits to their employees in 2019. It was a 5.6% reduction in costs from the prior year. The results from the latest study by the National Academy of Social Insurance (NASI) also show that the actual benefits paid … Read More »

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IMR Usage Down 20% From Historical Norms

California’s independent medical review program is driving down much of the medical expense in the workers’ compensation system. But since its inception, usage has been far higher than expected. The number of IMRs – is still higher than the drafters of the Baker Workers’ Comp Reform – SB 863 expected, but full-year data for 2020 … Read More »

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The Case For a Workers’ Comp Rate Cut

The insurance industry officially asked Insurance Commissioner Ricardo Lara to approve a 2.7% hike in California’s advisory workers’ comp pure premium rates as of September 1, 2021. Employers are backing an alternative recommendation for an 8.2% decrease based on the analysis by actuary Mark Priven of Bickmore on behalf of the public members to the … Read More »

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Amid Pandemic, 2020 Combined Ratio Tops 100

The preliminary combined ratio for California workers’ comp carriers may have climbed past 100 last year for the first time in nearly a decade as COVID-19-related costs pushed up the industry’s average. The Workers’ Compensation Insurance Rating Bureau is projecting the 2020 accident year combined ratio at 102% inclusive of the COVID-19 costs. The Bureau … Read More »

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Democrat Proposal A Major Cost Driver For Employers

California employers can expect to pay more, a lot more, if a proposed bill to create a state-run wraparound medical provider network (MPN) becomes law. Experts note that employers will pay millions to develop and maintain this state-run all-encompassing network. The proposed change will drive up the cost of care by losing network discounts on … Read More »

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Return-To-Work Fund Edged Towards Full Expenditure Before Pandemic

The Baker SB 863 workers’ comp reforms created a special $120 million fund to give supplemental payments to injured employees who could not return to their at-injury employer. Eligible injured employees who apply get $5,000 each, but the program has never spent all that it has to give. Could this be the year? Not likely, … Read More »

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Riverside County Busts Alleged SJDB Fraud Ring

Prosecutors in Riverside County filed criminal charges against 14 persons. They are accused of running a scam that bilked California employers out of some $22 million. Instead of funds going to pay for retraining services so injured workers could resume their work lives, investigators say they went instead to two “sham” vocational schools and a … Read More »

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2021 Rates Are Out: Lara Rejects COVID-19 Surcharge

In a stunning blow to the Bureau and a major victory for California’s employers Insurance Commissioner Ricardo Lara issued the 2021 pure premium advisory rates. There is an 8.6 overall average difference between what the Bureau recommended and what Lara approved. He is rejecting the Bureau’s filing for a COVID-19 surcharge on all employers – … Read More »

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