Commissioner proposes workers' comp rate hike

By CMTA Staff

Capitol Update, Dec. 7, 2012 Share this on FacebookTweet thisEmail this to a friend

Despite recent legislative reforms to the workers’ compensation system touting lower employer costs, California Insurance Commissioner Dave Jones (D) has recommended a rate increase to employer-paid workers’ comp premiums. In the previous session, reform measure SB 863 (Kevin de Leon, D-Los Angeles) was approved and subsequently signed by Governor Jerry Brown with the promise of reducing costs to employers while increasing benefits to injured workers. In his recommendation, Jones argues that the current premium rate of $2.49 per $100 of payroll should be increased to $2.56 – a 2.8 percent hike which could cost employers an estimated $300 million a year. According to Jones, the rate change should be adopted given the growing concern of insolvency amongst state workers’ comp insurers due to policy premium rates coming in much lower than the amount of claims being paid out to injured workers.

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