ACIC Reacts to WCIRB’s Recommendation to Reduce Pure Premium Rates by 10.4%
SACRAMENTO, CA — Reacting to the Workers Compensation Insurance Rating Bureau’s (WCIRB) Governing Board’s decision to recommend a 10.4 percent reduction of the average advisory pure premium rate, ACIC says these decreasing costs are a testament to the comprehensive reforms approved by the California Legislature and Gov. Jerry Brown in 2012.
“Despite increasing costs to administer workers compensation claims, the WCIRB indicates lower medical costs and declining severity warrant a reduction in the average pure premium rate,” said Mark Sektnan, ACIC president. “This is good news for employers who will see lower average costs and employees who are receiving evidence-based medically appropriate care in California’s system.”
The WCIRB Governing Committee voted unanimously today to authorize the WCIRB submit a mid-year pure premium rate filing to the California Department of Insurance (CDI) of $2.30 per $100 of payroll. The next step will be a hearing by the California Insurance Commissioner to hear the WCIRB’s recommendation.
“Each time California enacts a major workers compensation reform it is a gamble that the expected savings will actually materialize,” said Sektnan. “The WCIRB’s recommendation is evidence that the reforms are being implemented correctly. It is important to protect these reforms and prevent actions that can undermine them such as onerous court decisions that can chip away at cost savings.”