Today’s issue of WorkCompRecap features the recent announcement from California Insurance Commissioner Dave Jones that he has adopted and issued a revised advisory pure premium rate.
The change lowers the benchmark rate to $2.30 per $100 of payroll for workers’ comp insurance, effective July 1, and represents a 10.5% reduction when compared to the average insurer-filed pure premium rate. While mid-year adjustments are not the norm, Jones followed the WCIRB’s recommendation, noting cost data indicating workers’ comp insurers’ medical costs were lower in 2015, which appeared to be the results of SB 863 reforms. The WCIRB did point out that not all projected cost reductions have materialized, and other costs continued to rise, but they were offset by the decreases in medical costs.
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