On Monday, the California Workers’ Compensation Insurance Rating Bureau recommended decreasing the current workers’ compensation advisory pure premium rate, the Sacramento Bee’s “Capitol Alert” reports.
Details of Recommendation
In a filing with the state Department of Insurance, WCIRB recommended that $2.46 per $100 of payroll be spent on workers’ compensation, a 10.2% decline from the current advisory rate of $2.74 per $100 of payroll.
The newly proposed advisory rate is 5% lower than the current insurance industry average of $2.59 per $100 of payroll.
According to the filing, the pure premium advisory rate is based on WCIRB’s cost estimates for:
-Administering benefits; and
-Providing medical care and support payments to workers with disabilities.
The proposed rate is for advisory purposes only, and actual rates charged by insurers vary widely depending on competition and underlying costs (Walters, “Capitol Alert,” Sacramento Bee, 4/6).
WCIRB recommended that the proposed pure premium rates take effect July 1 (WCIRB filing, 4/6).