Posted on 12 Aug 2010
In a follow-up to a story that appeared on ProgramBusiness earlier this week, a recommendation to increase workers compensation rates by 29.6 percent has been approved by the Workers' Compensation Insurance Rating Bureau of California's governing board.
The recommendation will now go to the state insurance commissioner. A WCIRB panel of insurer actuaries suggested that a 30% rate hike is necessary. The increase would take effect on January 1, 2011.
California Gov. Arnold Schwarzenegger had written a letter to Insurance Commissioner Steve Poizner asking him to reject the recommendation for such a rate increase.
“I am confident you will not allow such a tremendous financial burden on California businesses at this time,” Gov. Schwarzenegger said in the Tuesday letter.
The governor’s letter also said insurers must use the tools provided in reform legislation that he signed into law in 2004 before they consider raising workers comp rates.