Poizner stated that the insurance companies had been ineffective to restrain costs
Steve Poizner, California Insurance Commissioner, has cast off an appeal from insurance companies to enhance a key benchmark that helps determine workers’ compensation rates – reported in syracuse.com.
Poizner stated that the insurance companies had been ineffective to restrain costs and that the workers’ compensation system is not operating efficiently. The insurers had sought to increase their average cost of care by nearly 24%. That benchmark is used to set premiums charged to businesses for their workers’ compensation insurance.
Poizner has only an advisory role, meaning insurance companies can choose to raise rates as much as they wish.
He expressed that self-insured companies such as Safeway are covering decreased costs. He urged insurance companies to do the same.