Posted on 12/23/2004 5:55:01 PM PST by NormsRevenge
SACRAMENTO (AP) - The Schwarzenegger administration on Thursday released a sweeping set of regulations aimed at revising how doctors evaluate permanent injuries to workers and how much compensation they are paid.
The new regulations are a key element of the landmark reform of the state's compensation system approved by the Legislature last spring and aimed at cutting billions from the rates employers pay for insurance.
The new proposal calls for the use of guidelines developed by the American Medical Association for measuring permanent disabilities. The administration also wants to employ a new formula for translating the degree of injury into dollars paid in compensation.
Union officials and worker advocates said the new regulations will result in cutting benefits for workers. Critics also complain the public only has a few days to comment on the plan before they could be adopted.
"Gov. (Arnold) Schwarzenegger is making these cuts at a time when most people will not be paying attention," said Art Pulaski, executive secretary treasurer of the California Labor Federation. "Injured workers deserve better than a weekend attack like this. If the governor is going make drastic cuts in their payments, he should at least give them a chance to respond."
The new rules have been sent to the Office of Administrative Law, which has up to 10 days to consider the regulations.
The proposed rules have been in the making since the passage of the worker's compensation reform legislation last spring.
Reforming the workers' compensation system was a major milestone for Schwarzenegger in his efforts to improve the California economy. The 91-year-old system was known for charging the nation's highest insurance rates while delivering inadequate care to workers.
Rates paid by employers for worker compensation insurance jumped an average of 149 percent from 2000 to 2003, according to the Department of Insurance.
The reform legislation included caps on disability payments and a requirement that injured workers must choose physicians authorized by employers and insurance companies.
The other big change focused on how permanent disabilities were evaluated and compensated.
Supporters said the administration's new regulations provide a major step forward in bringing down the cost of workers' compensation insurance.
"For the first time, California will have a system that measures permanent impairment based on clear, objective factors," said Allen Zaremberg, president of the California Chamber of Commerce.
But critics, like David Schwartz, president of the California Applicants' Attorneys Association said the new rules will "severely reduce permanent disability benefits to injured workers" because of how the new compensation formula works.
Pulaski said that many injured workers will get fewer benefits under the new system and some will not get any compensation at all.
"Gov. Schwarzenegger made a promise to injured workers that they wouldn't suffer as a result of workers compensation reform," said Pulaski. "Now he is slashing benefits in half for workers on permanent disability."
Not so, said Sen. Chuck Poochigian, R-Fresno, who was the lead author of the reform legislation, who called the proposed system in line with what the Legislature agreed to last spring.
"Even with the implementation of a new permanent disability schedule, California's overall benefit system remains more generous than many states," Poochigian said.
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Department of Industrial Relations
The heart of this legislation attempts to disenfranchise those physicians running "welfare gins". It also takes square aim at limiting compensation for soft tissue injuries and the ever hungrier "chiropractic monster" this legal abuse has spawned.
Too bad it gets released right in the midst of the start of the holiday.
Coincidence, I'm sure. :-)
Actually this is VERY GOOD LEGISLATION. Getting to the heart of the corruption in the entire Workman's Comp and Medical system. And believe me, there is PLENTY OF IT. A huge sink for tax dollars -- wasted and stolen.
Nice move Arnie --- keep at it, like a junk yard dog!!!!
Worker compensation. You work and you are compensated. Otherwise, tough ???
I am not sure what you mean by 'Chiropractic Monster'...
Could you elaborate please?
With the legitimization of soft tissues injuries within the last decade the only judge of the existence or severity of the injury is the employee. Claims are based on what the employee feels, not any indicator that can be verified by medical science.
Consequent to this rise of legal abuse was the grudging acceptance of chiropractic as a "cure" for soft tissue injuries. This acceptance was not forced by the employee or by chiropractics but rather by union lobbyist working the liberal legislature and liberal executive.
This resulted was the perfect storm, the rise of the "chiropractic monster". The worker claims a soft tissue injury (carpal tunnel or bad back) and then proceeds with a life long series of chiropractic treatments plus retirement benefits. Neither the injury itself nor the effectiveness of the treatment can be proved by modern medicine. A heaven on earth made for fraud committed by both the lazy employee and the unscrupulous chiropractor.
In the "Arizona" model many soft tissue injury claims are processed as a legitimate short term claim when submitted the first time but rather than establishing long term disability for such a claim the employee is simply encouraged to go find another job that does not aggravate his unprovable condition.
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