California to lower workers’ comp rates?

California to lower workers’ comp rates?

Rumor has it that, if all goes well in a vote by the State Compensation Insurance Fund, the state of California may see a workers’ comp rate decrease. The news follows on the heels of the recent Senate Bill 863 which aimed to reform critical loopholes in the state’s workers’ comp system.

The vote is pending any new regulations that will implement following the bill’s approval. Many people, including us at Work Comp Fraud Fighters, are working hard to make sure the new law is hammered out properly. Experts are currently paying attention to important factors that can dramatically raise insurance rates like cases involving psychological trauma. That’s why it’s all speculation right now as to whether any cost savings will be achieved by the newly passed bill. Coupled with a pending vote by the State Compensation Insurance Fund, any savings remains in the air.

The new workers’ comp law will take effect on Jan. 1, 2013. It’s main promise is to increase benefits for injured workers while reducing the massive overhead it bears on the state of California, the Insurance Journal is reporting. Those estimated savings could rack up to nearly $1 billion dollars.

But that’s all speculation now. As the insurance journal puts it:

Simply put no one really knows yet how much will be saved, and even the authority on workers’ comp rates, the California’s Workers’ Compensation Insurance Rating Bureau, has even changed its mind a few times.