According to the Workers’ Compensation Insurance Rating Bureau, the overall cost of workers' comp to California employers has dropped since 2012. The finding also comes with the data that suggests, despite the decline, that cash benefits for injured claimants has improved.
As the Sacramento Bee reports, the fall in employer costs is likely due to 2012 legislation aimed at this precise effect. Since the 2000s, California's worker's compensation costs have been some of the highest in the country. Two rounds of legislation have been enacted since that time-- the latest as the 2012 deal between employers and unions to increase benefits while keeping medical costs down.
The Workers’ Compensation Insurance Rating Bureau now reports that the average employer insurance premium is about $2.86 per $100 of payroll. In 2003, when Governor Schwarzenegger had to urge legislation to take action, the average cost was a whopping $6 per $100 of payroll.
Still Progress to be Made
While the legislative shifts have made progress in reducing employer workers' comp costs, there is still work to be done. The Oregon Department of Consumer and Business Services estimates that California's costs are still the highest in the nation. In fact, in a 2014 survey, California's worker's comp costs were roughly twice the national average.
The Workers’ Compensation Insurance Rating Bureau has recommended a “pure premium rate” of roughly $2.30 per $100 of payroll effective July 1, which is more than 10% lower than the average premium rate of insurers so far in 2016. The hope is that the recommendation will be heeded and costs will continue to fall—and eventually give employers less reason to be adversarial when a legitimate workers' comp claim is made by one of their employees.
Have you been injured at work and need to file a worker's compensation claim? If so, it is highly advised that you do so with the counsel of an experienced Glendale workers' compensation attorney. At the Law Offices of Wax & Wax, we have helped countless clients secure the workers' comp benefits they deserve, even when they have faced resistance from employers, insurance red tape, and other challenges inherent to this process.
Do not face your workers' comp claim without the advocacy you deserve. Contact us today to start exploring your options.