Oakland, CA – The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) recently released the latest edition of its SB 863 Cost Monitoring Update.
Senate Bill (SB) No. 863 was signed into law in 2012, which increased benefits effective January 1, 2013 and January 1, 2014, and provided for a number of structural changes to the California workers’ compensation benefit delivery system.
The WCIRB published a prospective estimate of the cost impact of SB 863 in October 2012, and has since continued to refine its estimates based on later emerging data.
Key findings of the most recent SB 863 cost monitoring update include:
- In total, the WCIRB estimates that SB 863 has saved $2.3 billion to the California workers’ compensation system annually, or 12 percent of total loss and loss adjustment expense costs.
- These savings have accumulated to a total systemwide savings of over $10 billion since SB 863’s implementation, which have largely driven a series of advisory pure premium rate decreases totaling more than 40 percent and have resulted in the lowest average charged premium rates in the marketplace in more than 40 years.
- The indirect SB 863 savings related to indemnity and medical costs are more than twice the increases to permanent disability benefits and are significantly greater than originally projected.
Read the entire cost monitoring update here: CA WCIRB: SB 863 Cost Monitoring Update (PDF)
Source: CA WCIRB