San Francisco, CA – State Compensation Insurance Fund’s 2016 Annual Report is now available online. The report shows a net income of $192 million in 2016. Other important financial highlights include:
- 128,000 policies written in 2016.
- Earned net premiums of $1.5 billion.
- Policyholders’ surplus grew by $156 million since Dec. 31, 2015.
- Net investment income of $627 million.
“Last year marked another year of healthy competition in the California workers’ compensation market,” stated Vern Steiner, State Fund President & CEO. “We were pleased to introduce a rate filing that included an overall decrease in collectable premium of 9.5 percent as well as an expanded pricing model, which further enhances pricing accuracy and makes our rates more stable year over year.”
Other accomplishments include transitioning to an outcomes-based Medical Provider Network (MPN). Called the State Fund MPN by Harbor Health, this network of physicians utilize evidence based medicine to provide more consistent quality care to injured workers.
In 2016, State Fund reached successful resolutions with most of the defendants in two Racketeering Influenced and Corrupt Organizations Act (RICO) suits filed in 2013 (the few outstanding plaintiffs were successfully resolved in the first quarter of 2017). The purpose of the suits was to expose and prosecute a complex fraud scheme that was being perpetrated by a number of medical vendors in the California workers’ compensation system. State Fund took on this monumental legal battle that spanned both federal and state civil courts to expose this fraud to the light of day and bring greater awareness to the magnitude of medical fraud within the system so that more can be done to protect injured workers and policyholders.
Click here to view the report: State Fund 2016 Annual Report
Source: State Fund