COST OF INSURANCE FOR WORK INJURIES SOARS ACROSS U.S.
By Joseph B. Treaster
Cost of workers' compensation insurance is at highest rate in nearly decade, adding another heavy burden on businesses and struggling national economy; thousands of bills on workers' compensation have been introduced in state Legislatures, in effort to contain costs; system covers 127 million workers nationally; it is regulated state by state, with no federal oversight and no role by Congress in its regulation; nationwide, average cost of workers' compensation insurance has risen 50 percent in last three years; in that same period, average cost has nearly doubled in California; as result, dozens of big and small businesses there are laying off workers; some businesses have closed and others have moved to other states where insurance costs have not risen as much; experts say prices are rising because of rising medical and legal costs, recent devastating price war by insurers, and, many insurers and business executives say, significant amount of fraud; in several states, including New York, regulators still control rates, but if insurers refuse to sell coverage, customers are forced into state-run pools where rates are even higher; in California, where there have been virtually no limits on rates since 1995, commercial insurers still find it impossible to turn profit; photo; graph (L)