Group urges 29.6% hike in California workers' comp rates

SaC bee ^ | 8/12/10 | Dale Kasler

[NormsRevenge]

Workers' compensation insurance, a hot issue in the debate over California's business climate, is about to get more expensive again.

But it's not clear by how much.

An influential insurance-industry group said Wednesday that workers' comp premiums should rise 29.6 percent, effective next January. The group's findings are purely advisory, and experts doubt rate increases will be that dramatic.

Nevertheless, the recommendation makes it obvious that companies will begin charging more for workers' comp – putting more pressure on employers struggling in a weak economic recovery.

Workers' comp is a significant cost of doing business, and premiums reached something of a crisis point in California several years ago. Business lobbyists said workers' comp expenses were helping drive companies out of California. Gov. Arnold Schwarzenegger signed an overhaul of the system in 2004 that brought premiums down more than 60 percent.

Now premiums are starting to drift back up, albeit slowly – about 5 percent or less in the past year or two.

[NormsRevenge]

Didn’t we just go thru a ‘fan dance’ over this issue not so long ago..

[umgud]

California will be one of the last states to recover, if ever.

[tired&retired]

People have no idea how high these rates already are... Some construction rates are in excess of 30% of payroll already...

[Myrddin]

A good reason to relocate your business out of California.

[BigFinn]

People that really need it, can’t get it... and those that make ridiculous and fraudulent claims get the biggest rewards without a blink of an eye. I’ve seen many examples of just that. Bigger Workman’s Comp fees invites more fraud and stealing from businesses that are already dying from the exorbitant fees. It’s whipped cream on top of the coffin.

[eyrish69]

The WCIRB recommends a fat increase like this every year. Then they put out a ton of press releases about it, watch as private carriers increase their rates, then SCIF either lowers the rates or the increase is minimal.
I have watched this happen for the last 4-5 years. The State of Montana does the same exact thing with MSF. Both will bankrupt their system. In MT the state will just assess an Old Fund Liability Tax and force everyone to re-fund the system. As always, the state gov is trying to run off private carriers at the expense of the businesses and taxpayers.

[C19fan]

I found it odd for a state where it’s manufacturing is now non-existent Workers Comp rates are becoming out of control again. I guess those big cases of carpal tunnel syndrome.

[pogo101]

As an actuarial matter, the group may be correct in recommending the “insurance premium” be increased.

Regardless, though, businesses already are overtaxed and will continue to run from California at full speed.

[who_would_fardels_bear]

"Some construction rates are in excess of 30% of payroll already"

So are some of the people getting worker's comp benefits illegal aliens in the construction business?

Is this another net outflow of money from taxpayers to tax cheats?

[Steely Tom]

Sure. Why the hell not? Why not 296%?

[DryFly]

I’m definitely working on that. Got a home in CO, now just need to find the job.

[wiggen]

Sort of like judges ordering states to pay money they don’t have except this board has no teeth. The narrow vision of these people,their failure to see the bigger picture can only resolved by removing them from these duties. That includes judges telling governors they can’t furlough workers.

[DB]

I thought it was much higher than that for a roofer for example.

[DB]

The costs are due to large numbers of people claiming permanent disability and then retired on a nice forever insurance paycheck.

Just one of the many scams wiping out business in California.

[Myrddin]

I relocated from San Diego to Pocatello, ID in Dec 2000. I'm still "attached" to San Diego via my employer. To wit, I'm sitting at the San Diego office right now. I have to "tease out" tasks that I can do from my home office, then head home to do them.