By Sheena Harrison
Sep. 21, 2012
California’s latest workers’ compensation reforms are expected to cut the state’s comp costs by about $300 million, or 1.4 percent, annually, Fitch Ratings Ltd. said Sept. 20.
S.B. 863 was signed into law Sept. 18 and takes effect Jan. 1. It is expected to boost permanent disability benefits for injured workers while implementing several measures to help reduce comp costs for insurers and employers.
In a statement, Fitch cited estimates from the California Workers’ Compensation Insurance Rating Bureau, which expects decreased claim frequency to lower costs by $900 million, or 4.5 percent, in 2013. The savings would be offset by $600 million in increased disability benefits in 2014, Fitch said.
“These changes will help to avert market crisis conditions similar to those experienced in the early 2000s that saw several insurer insolvencies and expansion of the State Compensation Insurance Fund to 53 percent market share in 2003,” the statement said. “However, the modest anticipated savings also indicate that further price increases are required in the California workers compensation market to return the market closer to an underwriting profit and attract underwriting capacity to the state.”
We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.
BenefitsEEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances
If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...
ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated
BenefitsFixing some common misconceptions about HIPAA
Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...
COVID-19, health care, HIPAA, human resources, wellness
BenefitsWe are in the midst of a public mental health crisis; how employers can help
Do not ignore these issues or your employees who are living with them. Mental health illnesses are no d...
ADA, benefits, Coronavirus, FMLA, mental health, paid time off