This week the Workers Compensation Insurance Rating Board approved a 9.1% increase effective July 1.It now goes to the Insurance Commissioner. In the past the Bureau has approved sizable increases and the Insurance Commissioner has rejected them either reducing the amount or giving no increase. Insurance companies can take the Insurance Commissioners recommendations but the Commissioners recommendations are not binding.
We know the results of the last couple of years have not been good for the insurance industry in workers compensation. The cost of medical care is increasing dramatically. Insurance companies for the most part have been taking modest increase but I think it is fair to say at some point there will be more significant increases. I would be surprised however if this happens in July.
What has been your experience on your policies. Have you seen rate increases?
I was reading an article in the New England Journal of Medicine this morning and found an interesting piece on the Massachusetts experiment with their heath law. While 98% of the people of the state are covered by health insurance the cost has increased whereby in 2012 health spending will consume 54% of the state budget. This is up from 49% in 2009. This clearly illustrates why it is so important that the Affordable Care Act, assuming the Supreme Court does not overturn it, must address the cost in the health system. If it does not the sustainability of every other public service will be threatened.
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