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Few lofty pronouncements were made today at
the rather humdrum pure premium rate hearing
usually presided over by flashy Insurance
Commissioner John Garamendi, who was out
campaigning for Lt. Governor. The latest field
polling indicates that if the primary were
held today Garamendi leads by 31 percent over
his opponent, Sen. Jackie Speier (D-San
Mateo).
Unless there is a California workers' comp
carrier about to tank on his watch, Mr.
Garamendi can enjoy a rebounding soft market
thanks in no small part to the regulations
implemented by the current administration. The
Commissioner is expected to make a rate
announcement sometime around the beginning of
June.
It's the position of the California
Applicants' Attorneys Association that any
change to the Permanent Disability Rating
Schedule should impact all injuries from Jan.
1, 2005 forward. Speaking at the rate hearing
today on behalf of CAAA, Mark Gerlach stated
the position and maintained that CAAA will
continue to fight what it considers an illegal
PDRS.
The statement illustrates the uncertainty
still pervading the California workers' comp
market. Thankfully the legislation is on the
light side this session, although the spot
bills addressing permanent disability and
treatment guidelines are still a wildcard.
Both the industry, the Workers' Compensation
Insurance Rating Bureau and the Department of
Insurance can enjoy unprecedented loss ratios
and declining frequency.
"With numbers like this there can little
doubt that the reforms have decreased costs
significantly," says Dave Bellusci, chief
actuary of WCIRB.
During the discussion of the Bureau's
recommended 16.4 percent pure premium
decrease, the Department seemed stunned by the
almost 18 percent decline in indemnity claims
frequency, wondering if there is a systemic
issue going on. The applicants' attorneys say
the claims are going elsewhere because injured
workers cannot get the care they need.
But it's just as likely that thanks to
utilization review and treatment guidelines,
legitimately injured workers are getting
exactly the evidence-based treatment they need
for work related injuries, and nothing more.
In other words, the reforms are working as
intended.
(Article from
WC
Exec)
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