Workers’ comp premiums may rise
April 13, 2012
A proposal Thursday by a state insurance rating agency may cost employers more for their employees’ work-related injury and illness premiums. The planned rate of increase, 4.1 percent, is smaller than in previous years but is expected to ignite yet another political fight around the program. [Sacramento Bee]
The so-called “pure premium rate” would be hiked 4.1 percent, raising costs to employers from $2.41 to $2.51 per $100 of payroll.
Premiums dropped following legislative reforms in 2004, but insurers have not been happy about what they describe as rising costs. Those reforms, according to labor unions and some attorneys representing injured workers, too often deny legitimate compensation for disabled workers.
Insurance Commissioner Dave Jones will conduct hearings on the issue, then make his own recommendation. Insurers then set their own rates.