Some industries are inherently more dangerous than others, and we accept that it will make insurance rates higher for the rest of employers. However, it still benefits you to know when and where rates change based on this, so you can plan for the future of your business. For example, if your city sees the addition of an additional thousand workers to be added to your fire department, you can prepare a budget that takes that into account.
California City Workers
It was recently reported that the costs for injured employees in Santa Monica are on the uptake and do not appear to be slowing down any time soon. It was found that the police and fire departments as well as the city’s bus system were the responsible parties. They saw a 7 percent increase from last year to this year, with a 15% rise in indemnity costs. More than half the cases saw the need for workers to completely abstain from work. This is not surprising for the city, as costs have been rising for quite some time. Between 2014 and 2015, they paid $5 million and then proceeded to increase it to $6 million for the next fiscal year. In the coming year, they’ve budged over double that at $13.8 million. These increases are staggering based on the claims themselves.
The Financial Future
It doesn’t appear that this is sustainable for anyone, and it’s affecting people across the board. Even those who participate in the Self-Insurance Fund to escape the costs of higher premiums are expected to feel it. The 5% projected increase in the financial forecast in Santa Monica for this group will likely end up being much more than that. The open claims are up several million from last year, mainly due to police employees. Many of the closed claims involved putting workers on permanent disability, with the condition that all medical treatments stemming from the injury will be covered for life.
What Can Be Done?
There is only so much you can do if you’re experiencing something similar in your area. For Santa Monica, they’re seeing an aging police force who are unable to keep up with the high-demand nature of their job. While the city is looking into ways to curb costs, it will likely be done on the legal side as opposed to directly working with employers. They want medical care to be accelerated for less downtime from workers as well. Staying informed and sending letters to officials when possible is a smart move when you see costs rising, as well as looking into any type of alternative action as well for insurance plans in your area.
