Sep 18 2013
The agency that helps set workers’ comp rates is recommending they increase 4.4% at the start of next year. The Workers’ Compensation Insurance Rating Bureau in early August recommended that the average benchmark pure premium rates for all of the state’s class codes in-crease to $2.62 per $100 of payroll for policies incepting on or after Jan. 1, 2014.
A good portion of the rate increase is due to increased claims filings, as well as rises in medical costs and permanent disability benefits that partly took effect this year and take full effect in 2014.
This year, benefit increases added an-other $620 million in system costs, the Rating Bureau has estimated. In 2014, the increases will add another $590 million in costs for all workers’ comp payers in the state.
That said, cost increases are expected to be offset by savings from reforms contained in SB 863, which was signed into law in 2012 and took effect at the start of this year. Continue Reading »
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