A recent report published by the Workers’ Compensation Insurance Rating Bureau (WCIRB) has found that premiums for workers’ compensation policies are on the rise in California. The WCIRB’s findings indicate that California’s soaring premiums are resultant of higher premium rates and growth in the number of employees becoming insured by their employers. Rates now are not much different than those from forty years ago; they are however on a double digit rise. According to the report, there are three predominant factors causing workers’ comp premiums to rise: high claims as they relate to medical costs, high frequency of permanent disability claims, and the high cost of delivering benefits. 
California’s claims frequency is being propelled chiefly by the Los Angeles area. In fact, “Take L.A. out of California’s claims frequency and it’s pretty similar to the rest of the country” says Tony Milano, WCIRB’s vice president. However, California has roughly fifty percent more claims than the national average and has twice as many permanent disability claims than the national median. Reforms such as S.B. 863 have made sweeping alterations to California’s workers’ compensation system with mixed results. In the case of S.B. 863 the law intended to reduce the cost of litigation, but only increased it, while at the same time causing a reduction in medical lien filings and costs.
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