Today’s issue of WorkCompRecap features California’s State Fund’s release of its 2016 Annual Report, which highlighted a net income of $192 million in 2016 (down from $271 million in 2015). Premium continued to decline in 2016, which State Fund attributed to the soft market and increased competition. Due to favorable loss development, State Fund also lowered its premium rate by 9.5% effective in September last year, and was also able to introduce an expanded pricing model to enhance rate accuracy and stability.
Other highlights included transitioning to an outcomes-based Medical Provider Network (MPN), which was called the State Fund MPN by Harbor Health. State Fund has also reached successful resolutions with the defendants in two Racketeering Influenced and Corrupt Organizations Act (RICO) suits filed in 2013 that exposed and prosecuted a complex fraud scheme that was being perpetrated by a number of medical vendors in the California workers’ comp system.
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