California: Workers' Comp Crisis Worsens - Some predict a meltdown

Los Angeles Times ^ | May 25, 2003 | Marla Dickerson

[John Jorsett]

• The California system's soaring costs place a staggering burden on employers, workers and the economy. Some predict a meltdown.

Ten years after the passage of landmark legislation meant to fix California's troubled workers' compensation system, the $15-billion industry is in turmoil.

The system is so broken that the state finds itself in a perverse predicament: Employers in California pay more for workers' comp coverage than in any other state, yet their injured employees receive some of the skimpiest benefits in the nation.

Cutthroat competition and soaring medical costs have sent nearly two dozen workers' comp carriers into insolvency, while the state-run insurance program of last resort is facing financial troubles of its own. With ailing insurers jacking up rates to recoup their losses, total workers' comp premiums paid by California businesses were 69% higher last year than in 2000.

Because workers' comp costs are directly linked to the size of payroll, some employers are responding by freezing the size of their staffs, reducing hours or laying off workers.

[John Jorsett]

ping

[Dialup Llama]

> Employers in California pay more for workers' comp coverage than in any other state, yet their injured employees receive some of the skimpiest benefits in the nation.

Socialism?

[Mister Baredog]

California: Workers' Comp Crisis Worsens - Some predict a meltdown

California Meltdown Worsens Period. Add this to the LIST of Self-Inflicted Disasters, ugh.

[Reaganwuzthebest]

Cutthroat competition and soaring medical costs have sent nearly two dozen workers' comp carriers into insolvency, while the state-run insurance program of last resort is facing financial troubles of its own.

Can't help but notice there's no mention of illegal aliens whatsoever as a contributing factor, of which soaring medical costs are directly related. Someone has to pay for the freeloading.

They'll never solve the problems if there's denial or lack of backbone to confront them.

[John Jorsett]

Can't help but notice there's no mention of illegal aliens whatsoever as a contributing factor, of which soaring medical costs are directly related. Someone has to pay for the freeloading.

I'll go along with blaming illegals for a lot of the problems we face, but I'm not sure they're responsible for this particular one. They tend to work off the books, and thus not participate in the worker's comp system. If you read far down into the article, you'll see some people complaining about being underbid on jobs, and suspecting the competition of not paying the WC premiums. That's where the illegals would come in, but I don't think they're much to blame for the huge increase in premiums. For that, I'd say the fraud (lots), legal manuvering, and waste is more to blame.

[hgro]

Workers Comp in every state is a piggy bank for ambulance chasing shysters.

[river rat]

We're talking about Kalifornicate, folks..

One of The largest, richest states in the Union ---- before the Democrats took over Sacramento and the Governor's mansion....

Kalifornicate's legislature and Governor couldn't make money, if you gave the stupid bastards a money printing press...

The state will have to fall even deeper into debt - and even closer to bankruptcy by the illegals requiring health, education and incarceration service costs, before anything good will happen...

Kalifornia is the first state in the nation with socialized medicine and cradle to grave government paychecks --- for illegals only....

Semper Fi

[ex-Texan]

Workers' Comp is California is a system where Major Fraud is the running the entire game. The insurance companies charge very high rates and rip off employers. Then they dispute nearly every claim automatically leaving workers without benefits. Medical providers will not longer treat injured workers because they know the insurance companies will dispute the claim.

Worse yet -- Hundreds of lawyers have bilked the system and filed fraudulent claims for workers who were not even injured. Example: Phony "stop and squat" or rigged low speed car accidents. This is a great source of fraud -- two frauds at once -- workers' comp and car insurance claims. Thousands of dollars in medical treatment bills, often just made up by "doctors" ripping off the system. Experts in the fraud trade are mostly Hispanic Sociopaths -- with links to the Zapatistas in Mexico.

Defense firm commit fraud every day by fighting claims that are legitimate. Lawyers working for defense firms make a fortune and get wined and dined by the insurance companies.

The BIG Loser -- honest employees with real injuries.

California is going down the toilet very soon. Between Gray-Out-Davis and the workers' comp crises the state is doomed !

[Reaganwuzthebest]

Where I blame the illegals is in soaring medical costs, that was one reason given for workers' comp carriers going into insolvency. Hospitals left holding the bag from freeloading illegals are passing those expenses onto everybody else. Insurance companies as a result are forced to raise their premiums.

It's the government that has to fix that problem through legislation, but I'm not sure they're willing to do it.

[Ernest_at_the_Beach]

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[Kozak]

Does ANYTHING in California function anymore?
Other then the Franchise Tax Board of course.

[KevinDavis]

This is going to make enron look clean.

[SAJ]

This is going to make Enron look clean.

IS GOING TO? Wrong verb tense, m'friend. Enron is/was peanuts, both in size and crookedness, compared to Grayout Doofus and his Calbanian Clowns.

[FITZ]

This is in today's paper here -- a Mexican farmworker is getting 26 million dollars for a workplace injury -- Farmers Insurance is ordered to pay it. $26 million must be loss of earnings?

http://www.diario.com.mx/nota.asp?notaid=46206

Los Angeles— Un campesino de origen mexicano será recompensado por una compañía de seguros con cerca de 26 millones de dólares luego de sufrir un accidente mientras trabajaba en los campos de Visalia, California.

[Amerigomag]

Oh but haven't you seen the Democratic solution. It's brilliant. It kills two bothersome birds with one stone.

Manadatory health insurance provided by ALL employers regardless of the number of employees.

Poof... workers comp is out of the budget and no longer a tax. Poof ... the rising cost of workers comp dissappears. Poof ... now its the big bad insurance companies gouging the little shop owner.

[KevinDavis]

My Bad.

[grayeagle]

Incidentally, this is where Boxer got all her money. It was reported that her hubby is a big worker's comp lawyer in the state.

[Duramaximus]

Pardon me if I don't appear surprised.

This is only one in a series of debacles facing the Peoples Republik of Kalifornia. The domino effect resulting from these failures will have catastrophic effects on this state.

When it happens I propose that we storm the legislature in Sacrademento and demand their heads! [/sarcasm]

Just one more reason for businesses to flee this state, and trust me if they aren't, they will.

The Socialists, Anarchists, and Freaks in charge of this state are selling it down the drain. We as taxpayers are paying the costs.

[green team 1999]

gloom and doom,california style