CA: State worker's comp system plagued by soaring costs

Mercury News ^ | 8/8/03 | Deborah Lohse

[NormsRevenge]

Dooley Benassi, chief executive of a 25-year-old San Jose paper-packaging business, can't explain why his worker's compensation insurance premiums rose 72 percent this year, to nearly $25,000, and will likely rise 23 percent more next year.

His 20 workers have filed only a handful of claims in the past 10 years, none more than $1,000. Benassi feels helpless and is hoping something comes along to ease his burden. Soon.

[NormsRevenge]

Not to fear, THEY're just legislating. :-`]

[NormsRevenge]

Ping

[isthisnickcool]

Dooley Benassi, chief executive of a 25-year-old San Jose paper-packaging business, can't explain why his worker's compensation insurance premiums rose 72 percent this year, to nearly $25,000, and will likely rise 23 percent more next year.

I'll explain it to him. LAWYERS.

[kellynla]

Simon was on the Mark Larson show this am and said that he would attack the workers' comp problem first thing. We already now that McClintock has addressed this issue and plans to cut the cost of workers' comp by 2/3's. Only 61 days 'til we DUMP DAVIS! VOTE 4 MCCLINTOCK! http://www.tommcclintock.com

[blackdog]

The state of Wisconsin announced that in 1992 one in ten residents was collecting disability. In 2002 three in ten residents are collecting some form of disability compensation!!!!!!

The liberal take(including the state) is that now we are finding all those who are entitled to collect disability and that is a good thing!

[ScottinSacto]

California Insurance Commissioner John Garamendi, who Thursday threw his hat into the crowded recall race for governor, blames a variety of factors for the runaway inflation.

Inflation is when a loaf of bread jumps 12 cents. When your w/c premium goes from $40,000 to $320,000 with no worker injuries to blow your xmod, it is called a hijacking by liberal constituents (i.e. lawyers).

Garamendi would glady take over the state budget fiasco, which is a million times easier to fix than w/c. Garamendi is rehashing proposed solutions he brought up in 1994. Some may work, but he has no political capital to get the game won.

And my favorite quote of the day so far from Garamendi in the SF Comical:

"I'm a cattle rancher. We were like two young bulls out there circling each other and snorting," said Garamendi, who owns a ranch in the Sierra Nevada foothills.

Finally a politician that admits that they are full of bull$#!T.

[SierraWasp]

That's "Bull Chit" in "Mexifornia, the State of becoming!"

By the way, I like the site in your tagline, as well.

Nobody is more fulla bullchit that John Garamendi... NOBODY!!! (the proof is in his brown eyes)

[forester]

Workers comp rates for loggers is 60-65% of payroll; roofing contractors are at 100% of payroll. That means to hire a logger at $10.00/hour costs the the employer $16.50/hour, this is why wages are not rising.

[BurbankKarl]

This is way out of control. I received some notice of a fee from the CAL OSHA TARGETED INSPECTION. Actually, it was a past due notice to pay $250, I never received the original. It is still sitting here, as I have never heard of the office asking for it, nor has our company ever paid these clowns.

Instead of going out and tracking down illegal employers....(staking out the Home Depots and moving places would be a good start) they add fees to the people that pay their inflated bills month after month.

[Ernest_at_the_Beach]

WC is probably the number one cause of businesses closing down and leaving the state!

calgov2002:

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calgov2002: for new calgov2002 articles. 

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[Kozak]

medical providers can charge under worker's comp to the amount that they get for similar services under Medicare, plus about 20 percent

And since Medicare pays a whopping 30% or so of charges, not even enough to break even for the visit ( thats why docs are refusing new medicare patients), that should guarantee no one will want to see work comp cases. Problem solved.

[John Jorsett]

Thank God, the Democrats are going to save us.

[forester]

...that should guarantee no one will want to see work comp cases. Problem solved.

Any ideas on how the politicians are going to pry the hungry lawyers off of the Workers Comp teat?