Posted on 02/04/2006 11:15:48 AM PST by NormsRevenge
SACRAMENTO California's overhaul of its troubled workers' compensation insurance system has saved employers at least $8.1 billion over the last three years, and the benefits to the economy are expected to continue, according to a study sent to the governor and Legislature on Friday.
The report commissioned by the state Department of Industrial Relations found that workers' comp premiums paid by businesses and nonprofit organizations, which soared as much as 200% in the early part of the decade, have been almost cut in half since July 2003.
What's more, rates in California, the highest in the nation in 2004, have dropped to 1996 levels and now are lower than those in other big states such as Texas and Florida, the report said.
Democratic lawmakers, labor unions and advocates for injured workers complain that at least some of the savings created by passage of the 2003 and 2004 workers' compensation laws has been at the expense of benefits and medical care for employees injured on the job.
"We're pleased that the rates are dropping, but this [report] only looks at half of the equation," said Steven Maviglio, a spokesman for Assembly Speaker Fabian Nuñez (D-Los Angeles). "It doesn't look at whether the savings are coming out of the hide of injured workers."
Maviglio noted that another major study being finalized by the state Commission on Health, Safety and Workers' Compensation concluded that rules imposed last year by Gov. Arnold Schwarzenegger's administration had reduced benefits for permanently injured workers by more than 50%.
(Excerpt) Read more at latimes.com ...
This is a good thing, considering some of the horror stories I've seen and many others I've heard about. Workman's Comp was rapidly driving business out of the state.
Costs to renew annual coverages experienced by local employers recently are down a bit but not anywhere near 50%.
What's missing from this presentation?
Study: The effects of legislative reforms on California workers compensation insurance ratesStudy required by Labor Code section 138.65 (SB 899) and performed by Bickmore Risk Services under contract with the DWC
Executive summary [PDF]
Click here to download the entire report [HTML]
I would sure appreciate comments from some small business owners in California re: their savings of late as this study may be more reflective of large businesses and their savings.
Thanks!
This report uses the zero-sum-gain game.
The saving projected ($8.1B) and the rate comparison (50%) are based on the difference between what rates would have been under the increases that California was experiencing, and the rate reductions that Davis' and the Wilsonegger gang's legislation accomplished.
Comparing Apples to Oranges.
FOR IMMEDIATE RELEASE
IR #2006-05
February 2, 2006
CONTACT:
Susan Gard
(510) 286-7049
State Division of Workers' Compensation releases study on the effects of legislative reforms on California workers' compensation insurance rates
Oakland - The state Division of Workers' Compensation (DWC) today released a study on the effects of legislative reforms on insurance rates in California. The study was conducted by Bickmore Risk Services under contract with the DWC.
"The study contains positive news for the California workers' compensation system," said DWC Acting Administrative Director Carrie Nevans. "Rates have been reduced and competition has returned to California's market."
The study report indicates approved insurance rates for 2006 have decreased by 46 percent, bringing them to rates below those charged in 1996. The report also indicates insurance companies are passing the bulk of their savings through to employers.
California Labor Code section 138.65 (SB 899) required the DWC's administrative director, after consultation with the state insurance commissioner, to contract with a qualified organization to study the effects of the 2003 and 2004 legislative reforms on workers' compensation insurance rates. The scope of the study included:
The primary research for the report was conducted by collecting information from a wide range of organizations, including the California Department of Insurance, the WCIRB, the University of California Data/Survey Research Center and the California Workers' Compensation Institute, along with reviewing claim files and conducting surveys.
The study can be downloaded from the DWC Web site at www.dir.ca.gov/dwc.
"California's overhaul of its troubled workers' compensation insurance system has saved employers at least $8.1 billion over the last three years, and the benefits to the economy are expected to continue, according to a study sent to the governor and Legislature on Friday.
The report commissioned by the state Department of Industrial Relations found that workers' comp premiums paid by businesses and nonprofit organizations, which soared as much as 200% in the early part of the decade, have been almost cut in half since July 2003.
What's more, rates in California, the highest in the nation in 2004, have dropped to 1996 levels and now are lower than those in other big states such as Texas and Florida, the report said. "
===
Here is one of Arnold's major accomplishments. Under a Dem governor it would have continued to keep getting worse.
Arnold is very much different from a Dem governor.
Consider the source: L.A. Times.
BUMP
Nice work, Governor.
Arnold is very much different from a Dem governor.
I hope enough folks realize this come November.
More attention to the thread seems in order. The major changes in worker's comp reform occurred under Davis, driven by the anger of the public. Surprisingly, that information was contained in the brief excerpt posted.
Those pesky little details. They disturb a partisan fantasy every time.
A good start.
The jury is still out as to whose 'Hall of Fame' he'll eventually end up in tho, imo. ;-)
His rate is at parity now but a employee has opened a claim and had surgery this week for a injury at his previous employer. :(
I think this reduction all started the last year of Davis?
I ask this, because I treated a woman in physical therapy several years ago that was claiming her repetative use injury was "mostly" due to her job...never mind her chronic pre-existing problem of fibromyalgia.
"What's more, rates in California, the highest in the nation in 2004, have dropped to 1996 levels and now are lower than those in other big states such as Texas and Florida, the report said. "
Oct. 7, 2003 -- Arnold elected governor.
Schwarzenegger Signs Workers Comp Reform
In 2003, Davis signed a workers' comp reform bill he praised as a "complete overhaul" ... but California's workers' comp costs remained high above the national average.
Schwarzenegger, who had made reform of the state's workers' comp system a top priority during his campaign, called a special session of the legislature to address the matter. He threatened to place a reform bill on the November 2004 ballot if lawmakers refused to support his plans and failed to take action by March 1.
"If modest reform is all that lands on my desk, I am prepared to take my workers' comp solution directly to the people and I will put it on the ballot in November," Schwarzenegger said.
As the March 1 deadline passed without agreement in the legislature, the governor publicly expressed his support for the Committee for Workers' Compensation Reform and Accountability, which was sponsoring an initiative to place the "Workers' Compensation Reform and Accountability Act" on the ballot.
The legislature finally passed legislation to reform the system on April 16.(2004) The governor signed the bill three days later.
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