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  • In its Quarterly Experience Report, the Workers’ Compensation Insurance Rating Bureau of California reported that written premiums were up by 27% due to higher employer wage levels and economic recovery following the COVID-19 pandemic. 

    The report concluded that:

    • California’s written premiums for the first six months of 2022 were 27% above that for the first six months of 2021 caused by the economic recovery.
    • The average charged rate for the first half of 2022 was 3% below that for 2021, making it the lowest in decades. 
    • The projected combined ratio for 2021, including COVID-19 claims, is eight points higher than in 2020 and 33 points higher than the low point in 2016. 
    • The average claim closing rates declined sharply beginning in the second quarter of 2020 due to the pandemic. After bottoming in 2021, average claim closing rates are beginning to increase in 2022. 
    • Medical service costs per claim increased by 3% in 2021, driven by an increase in the average paid per medical service transaction. 

    The Impact GMS Has On Your Business

    As workers’ compensation rates continue to climb in California, GMS can provide a better rate than what the state has to offer. Our workers’ compensation specialists help minimize your exposure, maintain records, and complete best practices that keep your business compliant with OSHA. Sharee Andrade, GMS’ Senior Director of Risk Management Underwriting expressed, “GMS helps businesses on all levels. We offer a robust workers’ compensation policy that covers 47 out of the 50 states, ensuring you stay compliant with state and federal laws. Our risk management team is yours as well. Our team of experts helps with underwriting, safety protocols within workplaces, and handle the claims process from start to finish.” Contact us today to learn more.

  • In Pennsylvania, health insurers are proposing an average of 7.1% increase in monthly health premiums beginning January 2023. The state Insurance Department announced that 375,000 individuals who are covered through the online state marketplace could be affected by this increase.

    “Increased choices and plan options will provide Pennsylvanians with the opportunity to shop for the best coverage options for themselves and their families,” Insurance Commissioner Michael Humphreys said in a prepared statement. “As we navigate through the aftermath of the COVID-19 pandemic, Pennsylvania continues to have a strong and competitive insurance market.”

    A U.S Senate vote is expected this week on a bill called the Inflation Reduction Act of 2022, which would extend premium subsidies for three years. Rate increases were attributed to rising health care costs, deferred claims resulting from the pandemic, and the end of enhanced premium tax subsidies.

    Additional Results Of Health Premium Increase 

    • Pennsylvania’s uninsured rate fell to 5.4%, the lowest rate due to the higher subsidies in 2022. 
    • Federal American Rescue Plan funding cut out-of-pocket premium costs by an average of 9% in 2022. The funding expires at the end of the year. 
    • It’s predicted that there will be an average increase of 5.2% for small groups. The department has the authority to modify the rate requests and continues to review the rates sought by insurers. 

    Help Lower Your Healthcare Premiums 

    Whether your organization lacks an HR department or needs a resource to make more informed decisions regarding benefits management, GMS can help. We offer you the opportunity to enter a relationship that encompasses all your administrative functions, allowing you to focus on what you do best. Contact us today to learn how you can lower your healthcare premiums.