2012 California Workers' Compensation Report | Brooks Barbee ...

Entering 2012, it?s good to reflect on what the future holds for California Workers? Compensation rates. Two questions stand out:

• What?s the impact of current changes made to the Workers? Compensation base rate?
• Is there any better understanding on the effects of the Health Care Reform Act on Workers? Compensation?

Workers? Compensation Base Rate

This Year, the Workers ? Compensation Insurance Rating Bureau adopted base rate changes representing a rate change of 37 %. Already carriers have increased rates between 2% and 20% and the likelihood exists for more changes moving forward.

These rate changes have impacted most companies and will have an even bigger consequence on employers with high experience modifiers. This underlines how important it is to maintain strong safety and risk management programs.

Health Care Reform

There are potential negative and positive outcomes for Workers? Compensation as a outcome of health care reform change.

Positive Aspects:

Harry Shuford, chief economic expert for the National Council on Compensation Insurance, indicated in a presentation at The Ratemaking and Product Management Convention, that the health care reform law is a ?totally new medical care system that appears to have material implications for the way ahead for health care delivery in the U.S.?

• Workers? Compensation costs may decrease as a result of the reform since medical claims are such a large part of Workers? Compensation costs.
• Workers? Compensation share of hospital bills is small and shrinking and Workers? Compensation is only 3 percent of all healthcare spending in the U.S. as a whole.
• The Patient Protection and Affordable Care Act includes facets of administrative simplification and standardization, which may have a potential positive effect on California Workers? Compensation rates.
• Medicare charges are going to be changed somewhat less often which should also help to hold down overall expenses.

Negative Aspects:

Swiss Re notes there are potential negative and unlooked for consequences to reform in the report, ?The Impact of U.S. Health Care Reform on Workers ? Compensation and Other Casualty Lines?

• As government mandated cost containment starves the healthcare provider community, insurers could be up against cost shifting into the Workers ? Compensation system.
• Medicare compensation levels are questionable for the medical profession now. As these lessen, this will pressure hospitals to cost shift where possible and the Workers ? Comp system is an soft target.
• Individual workers don?t bear the burden of costs and they have no reason or motivation to question the expenses for any services they receive. Without consumer oversight, cost shifting to the Workers ? Compensation system becomes less difficult.
• As more citizenry use the healthcare system with healthcare needs, the ratio of patients to medical professionals is likely to increase having an effect on availability of care.
• Cost cutting will make healthcare practitioners less likely to take part in occupational medical networks that offer reduced rates off fee schedules.

The Cure for Uncertainty

It is important to note that health care reform faces many in opposition and while it may be the law of the land today, it might easily see changes if there is a major repositioning in the political leadership of our country.

The best method during uncertainty is for each employer to be sure their organisation has developed and implemented effective risk mitigation programs, that might allow them to minimise exposure to any potential Workers ? Compensation premium increases caused by rate changes and healthcare reform.

Final Thoughts

As the New Year begins, be certain to perform a quick review of your policies and practices:

• Are you working with an Independent Insurance Agency that will help you find the best California Workers ? Compensation solution between different carriers for your individual situation?
• Do you have well-established programs to help you offset risks?
• Have you got ongoing worker education that serves to re-emphasize the significance of creating and maintaining a safe workplace?

If you are doubtful of what you may face due to the changing Workers ? Compensation landscape or if you have not taken a exhaustive look at your risk mitigation in a while, we at ISU Bob Gabriel Insurance are here to help. We provide both expertise and access to the best Workers ? Compensation insurance carriers and would welcome the chance to review your present policies and help you move into 2012 with confidence that you have the best Workers ? Compensation program in place to meet your needs.

Since 1936, ISU Bob Gabriel Company, an independent insurance agency, has been serving the business insurance needs of companies in Southern California including Santa Monica, Pacific Palisades, Brentwood, Mar Vista, Westwood, Malibu, West L. A. , Beverly Hills, Marina Del Rey, San Fernando Valley and the Greater L. A. Area. ISU Bob Gabriel Company has over 60 years of experience assisting clients with their workers? compensation needs. Our staff is highly experienced in workers? compensation and understands the controls needed to produce the best outcomes for our customers and their workforce.

Source: http://brooksbarbeenc.com/business-insurance/2012-california-workers-compensation-report

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