Senator Richard Alarcón (D-Van Nuys) said “the refusal of the Workers’ Compensation Insurance Ratings Bureau (WCIRB) to put a figure on the potential savings of the governor’s reform package signals the insurance industry is once again unwilling to guarantee that savings will be passed on to employers.”
Senator Alarcón is referring to a letter sent to the Senator’s consultant on Workers’ Compensation, Dr. Glenn Shor, in response to the Senator’s request that the WCIRB score the potential savings of the Governor’s Workers’ Compensation Reform Package as carried in SB4X-9 by Senator Charles Poochigian (R-Fresno.) The WCIRB is composed of the representatives of insurance companies who sell Workers’ Compensation Insurance in California.
“Past experience has taught us that we cannot continue to trim benefits to injured workers before being absolutely certain that those cost savings will be passed on to the employers in the form of lower premiums.” The WCIRB initially scored savings from Senator Alarcón’s SB228 that was passed last year at $3.9 Billion dollars but subsequently failed to recommend that insurance companies significantly lower their premiums as a result of those savings.
“There is only one way to guarantee that the insurance industry will pass savings on to employers and that’s rate regulation.”
Topics Commercial Lines Workers' Compensation Business Insurance
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