Aon: Savings in SB 863 Don't Offset Benefit Increase

By Greg Jones, Western Bureau ChiefInternational risk management and brokerage firm Aon says it does not believe the savings in Senate Bill 863 will offset the permanent disability benefit increase, and system costs in California will continue to rise.Aon said in a “Workers' Compensation Update” that it believes the permanent disability benefit increase in SB 863 will drive costs up by $982 million in 2014. At the same time, Aon said cost-cutting provisions will produce net savings of only $631 million, increasing system costs by a net of $351 million a year beginning in 2014.T...