Nicole Rice

Rating Bureau finds workers' comp costs remain high

By Nicole Rice, Policy Director, Government Relations

Capitol Update, July 30, 2015

California’s workers’ compensation (WC) premiums continue to grow at double-digit rates declared the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) in its recently released “State of the System” report.  WCIRB attributes most of the increase to upward pressure on premiums from rising healthcare costs and the increased number of workers on payroll as the state continues to recover from the recession.

The report demonstrates that despite the cost savings mechanisms and system reforms enacted under SB 863 (Chapter Number 363, Statutes of 2012), California still has more work to do to bring costs more in line with what manufacturers in other states pay for workers' compensation.

With the highest premiums costs in the nation, California manufacturers on average are paying $3.07 for every $100 of payroll in workers' compensation insurance premiums, according to the WCIRB report.  This is less than half the amount at the highest point of $6.29 in 2003, but still higher than the $2.94 paid in 2014.  Further, total premiums paid to workers' compensation insurers hit $16.5 billion in 2014, up from $14.8 billion the year before and 27 percent of all such premiums in the nation.

You can find more information on the findings from the “State of the System” report HERE.

You can see the trend from 2010 to 2014 HERE.
 

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