WCIRB: $10B in Savings Since SB 863 Enacted

Provisions in Senate Bill 863 resulted in more than $10 billion in savings for California’s workers’ compensation system since the reforms took effect in 2013, according to the Workers’ Compensation Insurance Rating Bureau. SB 863 sought to partially undo reforms from the early 2000s that cut permanent disability benefits by about 58%. The bill authorized an approximate increase of 30% in PD benefits phased in over a two-year period starting in 2013. At the same time, the bill included provisions intended to reduce frictional costs to pay for the benefit increase. The ...