State Compensation Insurance Fund today announced it has filed a mid-year rate plan that reflects a 15 percent increase in collectible premium. The revised rates will apply to new and renewal workers’ compensation policies effective on or after July 1, 2009.
“The principal driver of the premium increase is medical inflation,” said Jan Frank, State Fund CEO and president. Medical treatment costs have increased 16 percent annually for the past three years, according to the most recent report published by California's Workers Compensation Insurance Rating Bureau.
State Fund premium levels have fallen significantly since 2003, when Governor Schwarzenegger implemented policy reforms that lowered premiums, and even after this increase, will still be 46 percent below pre-reform levels.
“We understand the strain that California’s businesses are experiencing in the current economic situation,” Frank continued. “State Fund offers group discounts, a merit rating plan, and lower-than-average premiums in some classifications and industries Because of our size and role in the marketplace, State Fund serves as a stabilizing force in the California economy. State Fund is committed to our promise to California. We will continue to maintain our financial strength, our open door policy of providing workers’ compensation insurance for any employer who needs it, and to provide gold standard service to our broker community and policyholders.
Editor’s Note: Established in 1914 by the state legislature, State Fund is California’s largest provider of workers’ compensation insurance and a vital asset to California businesses. Completely self supporting, State Fund plays a stabilizing role in California’s economy by maintaining an open door policy that ensures that all employers have a strong and stable option for their workers’ compensation needs.
