Calif. Commissioner Responds on Pure Premium Advisory Rate Hearing

April 30, 2004

California Insurance Commissioner John Garamendi offered comment Thursday following a hearing that was called to analyze the cost savings in the recently passed Workers’ Compensation legislation SB 899.

“Today, in this first day of hearings to analyze the impact of the workers’ compensation reform legislation, no conclusion was reached with respect to the potential savings. The Workers’ Compensation Insurance Rating Bureau confirmed that the implementation of many of the reforms will not occur this year and information we gathered today suggests that some reforms will be subject to litigation. Additionally, some of the major cost savers contained in the legislation must be triggered by administrative action before costs in the system can be reduced.

“I expect that the WCIRB, with the assistance of the Commission on Health and Safety and Workers’ Compensation, will make an appropriate recommendation of the cost savings from the reform legislation. I have asked the WCIRB to complete its analysis prior to the resumption of this hearing on May 13, so that we may continue to work to expedite the passing on of savings to employers.”

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