[jimtorr]

....reduced benefits for permanently injured workers by more than 50%.

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.

[Amerigomag]

Something doesn't ring true here Norm.

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?

[calcowgirl]

From the Department of Workers Compensation website:

Study: The effects of legislative reforms on California workers’ compensation insurance rates

Study 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]

[Amerigomag]

Bingo! Got it Norm.

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.

[calcowgirl]

http://www.dir.ca.gov/DIRNews/2006/IR2006-05.html

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:

• Identifying and quantifying the savings generated by the reforms
  
• Reviewing rates to determine the extent to which reform savings were passed on to employers
  
• Assessing the effect of the reform savings on replenishing insurer surpluses
  
• Reviewing the effects of the reforms on rates, the marketplace and competition
  
• Reviewing the adequacy and accuracy of the pure premium rate recommended by the Workers' Compensation Insurance Bureau (WCIRB) and adopted by the insurance commissioner.

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.

[Wiseghy]

I've been hearing this from agents and small business people all over the place. This is a major, major victory for small business in this state. Note that very little complaining has been heard from claimants, despite the chicken-little predictions from the Bar and labor organizations. As designed, this stopped the most egregious and ridiculous claims while improving benefits for many others of the more seriously injured.

Naturally, the MSM refuses to cover it, and so the public is largely unaware.

Much more remains to be done however. Many times employees are still forced to sue their employers to get decent settlements, so that the lawyers get their cut. It is a nightmare, as many honest employees will tell you. That is simply wrong.

We need to torque down on minor and specious injuries more by bringing in more common sense judgment and less litigation. Laws that tilt away from tort and toward 24 hr health care integration would bring new economies and increase benefits for everyone.

[FairOpinion]

"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.

[Crawdad]

Consider the source: L.A. Times.

[SweetCaroline]

BUMP

[newzjunkey]

But I thought Arnold was all bad! (sarcasm)

Nice work, Governor.

[kstewskis]

Do they still have the law/rule in California, if that an employee can claim that their "injury" is 51% due to their job, they can claim full worker's comp benefits?

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.