From the Left Coast, WC premiums are skyrocketing. You can bet Illinois is going to follow.
Editor’s comment: A recommendation for a nearly 25 percent increase in workers’ compensation pure premium rates in California has prompted the state’s insurance commissioner to investigate why medical costs in the workers’ comp system are skyrocketing. According to a March 18 press release, the Workers’ Compensation Insurance Rating Bureau’s governing board recommended a 24.4 percent increase in the rate, or “claims cost benchmark,” which is the estimated change in claim costs for the next 18 months. The recommendation is based on increased medical costs and anticipated cost increases stemming from three recent Workers’ Compensation Appeals Board decisions.
The governing board directed WCIRB to submit a filing to the California Department of Insurance recommending the increase. Insurance Commissioner Steve Poizner announced in another release that he would convene a hearing to determine why workers’ comp medical costs are increasing. Even with the 24.4 percent recommended increase, the pure premium rate would still be lower than its high from 2003, according to WCIRB.
Trust us, Illinois needs to get medical costs in line or we are going to see the same sort of spiral in WC premiums. California saved billions by using mandatory UR; in 2005, Illinois business was promised UR that was to be mandatory until the “wise guys” found out what it was and put the kibosh on it. Please let us know your thoughts and comments.
