The Labor Office for Employee Benefits has proposed an increase of 2.7% in the advisory net premium rates for the autumn of 2021, mainly due to "significant" changes in government medical fees and medical fee schedules. 500 worker ratings are $ 1.50 per $ 100 in wages, according to the agency's Thursday application to the California Department of Insurance, which must approve the proposal. If approved, filing will take effect September 1, 2021.
The proposed prices are based in part on changes adopted by the California Division of Workers & # 39; Compensation 2021, which include changes to the evaluation and management department of the official Schedule for medical fee, which takes effect on 1
The Agency also stated that insurance losses incurred during the 2020 accident year, including "exposure, premium and loss experience significantly affected by the pandemic" but excluding "all claims arising directly from a COVID-19 diagnosis", affected the proposed interest rate statement.
The submission included "sophisticated projection methods for adjusting for distortions caused by the pandemic and … largely relying on pre-pandemic experience," among other issues.
WCIRB does not recommend that provision be included in this application to reflect estimated costs of COVID-19 claims on or after September 1, 2021, due to forecasts that the United States will approach flock immunity in the summer.
More insurance and work compensation news about the coronavirus crisis here .