In the event California adopts a current proposal by the Division of Workers’ Compensation to change the state’s disability rating schedule, the Bureau said it would recommend an additional 3.7% rate increase for January.
The Bureau cites rising medical costs as the primary reason for the proposed rate hike.
The California Department of Insurance can approve or reject the rate increase recommendation after holding a hearing, although the insurance department’s ruling is not binding on insurers.
If the insurance department approves the Bureaus’s rate increase recommendation, the move would obliterate a 14.2% decrease approved last July.