Tuesday, March 31, 2009

Workers' Comp Increase/ PG&E Victory/COBRA

I sent to all of you the Workers Compensation Insurance Rating Bureau Actuarial Committee recommendation of 27% effective July 1 for all new and renewal workers compensation policies. Yesterday the Board of Governors of the Bureau recommended 24.4%.It now goes to the Insurance Commissioner.

Hank Ryan representing Small Business California spoke at a CPUC hearing a few weeks ago against a rate increase by PG&E for small businesses. Last week the CPUC ruled against the PG&E increase. I believe we were the only business organization that spoke against the rate increase. TURN represented residential users and that increase was denied also.
Hank Ryan representing Small Business California is an intervener at the CPUC and he speaks out frequently at the CPUC on behalf of California small businesses.

It is expected that the Federal government will produce the notification form today for employers that are subject to notifying their employees of their COBRA options. For employers with 20 or more employees you will need to send this form to all employees who have been involuntarily terminated September 1,2008 or after.This applies only to those employees that had health insurance through your company. You will be required to pay 65% of your employees premium and will receive a refund from the Federal government
For those employers with 2 to 19 employees your insurance carrier will be sending notice and you will not be required to advance the 65%.

One interesting note is that if you are subject to Federal COBRA[20 or more employees] you are allowed to add 2% for administrative cost. If however you are under state COBRA[ 2 to 19 employees] the insurance company send the notice and bills the employee and can charge 10%.
If you would like a copy of the notification form please look on our homepage at www.smallbusinesscalifornia.org

Scott HaugePresidentSmall Business California2311 Taraval StreetSan Francisco, CA 94116shauge@cal-insure.com415-680-2188

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