Premium Rates for Workers Compensation Could Increase By 6.7 percent in 2015
The California Workers’ Compensation Insurance Rating Bureau announced that it would be recommending a 6.7 percent increase to the pure premium workers’ compensation rate in the state for 2015. This increase means that for every $100 of payroll, premium rates for workers compensation will be increased to $2.86, compared to the previous rate of $2.68 for every $100 of payroll for 2014.
There are a variety of reasons for the bureau to suggest this change, including the wage growth in California not quite meeting expected levels and earlier projections, the ever-increasing prices of medical coverage and procedures and the increasing levels of frequency of indemnity claims.
In fact, indemnity claims in Los Angeles County alone have risen by 19 percent in the last three years. This has meant a corresponding rise in the frequency of permanent partial disability claims, particularly those that involve cumulative injuries or injuries to multiple different body parts.
So what does this increase in premium rate mean for people in California looking to file a workers’ compensation claim? Simply put, it’s good news. Now, people in California who have been injured on the job stand to gain a bit more money through workers’ compensation payouts, which should help to pay for some of the rising medical costs in the state.
This potential change could affect employers and employees alike, so be sure to speak to an Orange County workers’ compensation attorney with the Law Offices of Tous & Associates for more information.