State Fund Files for 15% Rate Hike

State Compensation Insurance Fund announced this morning that it has filed for a 15% rate increase, to take effect July 1.

"The principal driver of the premium increase is medical inflation," said Chief Executive Officer Jan Frank in a press release.

State Fund said Medical treatment costs have increased 16% annually for the past three years, according to the most recent report published by California's Workers Compensation Insurance Rating Bureau."

State Fund said its premium levels have fallen significantly since 2003, and even after this increase, will still be 46% below pre-reform levels.

"We understand the strain that California's businesses are experiencing in the current economic situation," Frank said. "State Fund offers group discounts, a merit rating plan, and lower-than-average premiums in some classifications and industries. Because of our size and role in the marketplace, State Fund serves as a stabilizing force in the California economy.  State Fund is committed to our promise to California. We will continue to maintain our financial strength, our open door policy of providing workers' compensation insurance for any employer who needs it, and to provide gold standard service to our broker community and policyholders.

WorkCompCentral will post a complete report on Monday.

Source: State Fund