Workers Comp Headed in Right Direction?
Insurance commissioner John Garamendi is pushing carriers to slash workers comp rates by 18% this summer. Of course, Garamendi has no real power over private insurance companies' rates, but it looks like State Fund (which provides about 50% of WC insurance in CA and often serves as a benchmark) is set to cut rates. But the article also reports "complaints from small-business owners who say their final insurance bill has changed little in the past two years."
I can vouch for that - my rates have are exactly the same as when I signed on for my policy (with The Hartford) 28 months ago. But in the long run competition will bring the rates down.
Last year, the cost of medical treatment and benefits was the lowest ever -
45 cents for every $1 on premium to insurers, according to the Workers'
Compensation Insurance Rating Bureau of California. At the height of the
workers' compensation crisis in 1999, insurers were paying $1.41.
Competition will bring the numbers towards historic averages. However, CA's relatively business unfriendly slant will still keep the numbers above most other states.