Workers' Compensation: Updated SB 863 Cost Monitoring Report Released

Thursday, November 20, 2014

Updated SB 863 Cost Monitoring Report Released

Today's post was shared by CAAA and comes from www.wcirb.com

The WCIRB has released its Senate Bill No. 863 WCIRB Cost Monitoring Report — 2014 Retrospective Evaluation which is part of a multi-year cost monitoring plan developed by the WCIRB following the signing of SB 863 by the California Governor on September 18, 2012.
This report includes an updated retrospective evaluation of the cost impact of a number of SB 863 provisions based on data emerging through the third quarter of 2014. Based on the most current information, the WCIRB estimates the impact of SB 863 is an annual net savings of $0.2 billion, or 1.2%, of total system costs.
Shown below are the principal findings of the Report:

The impacts of increases to weekly permanent disability (PD) minimums and maximums for 2013 injuries are emerging consistent with initial projections. (The most significant increases to PD maximums did not become effective until 2014 and cannot be assessed based on post-SB 863 experience until next year.)

Changes to PD ratings for adjustments related to future earning capacity (FEC) and PD add-ons were projected to increase average PD ratings by approximately 6% (prior to any impact from the Ogilvie v. City and County of San Francisco decision). This is generally comparable to data on early 2013 PD ratings from the Disability Evaluation Unit (DEU) which suggests an approximate 4% increase in average PD ratings.