State proposes rule changes to workers comp experience rating plan

The California Workers' Compensation Insurance Rating Bureau has proposed regulatory changes to the state's insurance commissioner, including mandatory reporting of medical-only workers compensation claims and updated experience rating values.

The regulatory filing submitted Tuesday to California Insurance Commissioner Dave Jones recommends amending the state's Workers' Compensation Uniform Statistical Reporting Plan to specify that all medical-only comp claims, including first-aid claims, should be reported to WCIRB, according to a copy of the filing posted on the Oakland, California-based rating organization's website.

It also contains amendments related to the state's experience rating plan, as California on Jan. 1 will move from a fixed $7,000 split point for comp claims to a variable split point that changes based on a company's size.

Split points are the cut-off point between primary losses, which reflect frequency, and excess losses, which reflect severity. They are used to calculate experience modifications, or ex-mods, which are premium rating tools based on the claims experience of employers in similar industries.

The proposed California experience rating values include primary thresholds by employer size and expected loss rates by classification, among other things.

If approved by Mr. Jones, the recommended regulatory changes will take effect Jan. 1.

WCIRB said it expects to submit a separate filing in August proposing changes to advisory pure premium rates, which would also take effect Jan. 1.