Insurance Commissioner John Garamendi issued the following statement in response to the pure premium advisory rate hearing held May 13 to analyze the cost savings of workers’ comp reform legislation, SB 899:
The Workers’ Compensation Insurance Rating Bureau (WCIRB) recommended that the pure premium rate charged to California employers be lowered by 17.4 percent. This figure includes the 14.9 percent reduction I recommended to insurers last fall. Through its analysis, the WCIRB has provided evidence that there are indeed significant savings to be found in this latest round of legislative reforms.
While I cannot provide a specific percentage amount today, it is clear that employer premiums should go down if last year’s reform laws and the recent SB 899 laws are fully implemented by insurers.
Therefore, the task before me now is to use the WCIRB’s recommendation, along with all other relevant information, to determine my own advisory recommendation, which will go into effect beginning July 1, 2004. I am confident that we will be able to complete our task in time to allow any savings to be passed along to employers this year.
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