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Orange County businesses are bracing for an expected increase in workers' compensation insurance premiums.
State Insurance Commissioner Steve Poizner could suggest a 5% rise in premiums by the end of November based on a recommendation from a nonprofit group.
After Gov. Arnold Schwarzenegger's 2004 reforms, premiums have been steadily dropping. They're now so low that it's below the cost of administering claims, according to some in the industry.
If Poizner recommends an increase, it would be the first in four years. Insurers don't have to follow his lead but usually do.
Under Schwarzenegger's reform, injured workers had to see the insurers' doctors rather than their own.
That's led to a decline in the number of claims and medical bills, allowing insurers to offer cheaper premiums. The state reports about 800,000 claims have been filed per year, down from the 1 million per year average seen before Schwarzenegger's reforms.
Employers have made their own efforts to reduce costs, mostly by keeping their workplaces safer.
Good track records in safety not only cut medical bills, but also can lead to lower premiums down the road. Such is the case for blue-collar work, where injuries seem to be an unfortunate cost of doing business.
Some companies, such as PBC Cos. in Brea, have gone the self-insured route.
Two years ago PBC dropped its insurer and...