In a statement, Doug Stewart, State Fund’s interim president and CEO, said medical treatment costs have increased significantly, citing data from the California Workers’ Compensation Institute, and continue “to apply upward pressure to workers’ compensation.”

The average annual median inflation rate is 14% since 2005, according to State Fund, a self-supporting, non-profit organization providing coverage to employers at cost.

“We understand the strain that California’s businesses are experiencing in the current economic situation,” Stewart said. “State Fund offers group discounts, a merit rating plan, and lower-than-average premiums in some classifications and industries. Because of our size and role in the marketplace, State Fund serves as a stabilizing force in the California economy.”

Nevertheless, SCIF has moved forward with its 5% increase, in spite of Poizner's decline to the WCIRB to increase rates for the second time this year.