The public members would like to clarify any confusion on their position as regards testimony given at the Commissioner’s rate hearing on May 15.
The public members agree with the position given by the public actuary, Mark Priven. Mark’s position is that if nothing changes, loss development says we need more of a pure premium rate increase than what the Bureau has filed for.
The position expressed by the public members is that we believe things are going to drastically change, and be agreed upon by September. We believe we can achieve an appropriate PD, timely medical care, and significant cost reductions with a comprehensive reform package. In the last few months, it has become clear how much fraud, abuse, and waste is in the current system. There are plenty of costs to reduce, and still provide what employees need. Therefore, the public members agree with Mark’s position, but believe the [pure premium] rate would be turned around and adjusted downward for January 1st, 2013; so why go up for July 1st, and then go back down?
Workers’ Compensation Insurance Rating Bureau public members