Insurers are Passing Along Savings Generated By Workers’ Comp Medical Reforms, AIA Says

The American Insurance Association (AIA) issued the following statement by Mark Sektnan, AIA assistant vice president, western region, in response to Insurance Commissioner John Garamendi’s (D) report analyzing the rate filings of 95 insurance carriers. Commissioner Garamendi reported that out of 95 carriers, 69 companies have filed rating plans to decrease rates, 16 companies filed plans with no changes, and 10 companies requested rate increases.

“Insurance Commissioner John Garamendi’s analysis validates that reforms garner cost savings for employers. Insurers are implementing the reforms approved last summer and passing the respective savings along to their policyholders. Without passage of this session’s medical reforms, employers would be facing premium increases ranging from 12 to 20 percent.

“The Commissioner’s report demonstrates that insurance companies are responding to the reforms and employers are starting to see the benefits. The rate filings reflect a competitive marketplace which results in more options and choices for employers. Cost saving reforms, not rate regulation, are the answer to controlling skyrocketing premiums. These rate filings demonstrate that if the Legislature enacts more reforms, the market will respond and employers will see relief. “

Topics Carriers Workers' Compensation