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.

[sourcery]

FYI

[Gritty]

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

If you want real action, delete the "/sarcasm" part!

[GrandMoM]

Does ANYTHING in California function anymore? ....Yes, the GAY CRUSADE is doing very well, cause GAY DAVIS has signed all kinds of bills to help them.

[nwrep]

ATLAS SHRUGGED

[Lancey Howard]

LOL, there doesn't seem to be any end to the bad news coming out of Zimbabwefornia.

Flee.
Flee now.

[dennisw]

Can't help but notice there's no mention of illegal aliens whatsoever as a contributing factor.................


Sorry but in California legal and illegal immigrants are at the forefront of bogus comp claims and staged auto accidents for phony insurance claims. They are networked into a bunch of immigrant doctors and lawyers who facilitate them.

[Reaganwuzthebest]

Sorry but in California legal and illegal immigrants are at the forefront of bogus comp claims and staged auto accidents for phony insurance claims.

What are you apologizing for, I agree with you. Illegal immigration is one factor for rising health costs everyone else has to pay for, and fraud is certainly another one. In this story none of that is mentioned. It never is, too un-pc to do so.

[okie01]

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

Why should this be sarcasm???

[Scenic Sounds]

There'a some truth in some of what you say there.

Good post!

[balrog666]

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.

Poof ... no more small businesses.
Poof ... no more jobs.
Poof ... no more California.

[ampat]

Yes, socialism equals liberalism equals big government.

[ReagansShinyHair]

I was in a staged accident! I was at a light, and the light turned green, and the person in front of me started, then slammed on the brakes for no reason. There were no cars coming or anything. I tapped the bumper. There was no damage to either car, even though I hit the car with my license plate (flimsiest part). I was suspicious but figured I just should have not followed so quickly. I was upset, but after we traded insurance numbers she told me that she did it all the time, and that she would say she was hurt, and then my insurance company would give her a couple thousand dollars! She said it was no big deal, and everyone does it. Yeah, right. She was not Mexican, she was an immigrant from another country, FWIW. I told my insurance company what she said, but even though there was no damage to either car, they still paid her off, even though they told me that they were "cracking down on this sort of thing because it was happening way too often". I guess "cracking down" means bending over and grabbing their ankles.

I bet they are doing the same things with worker's comp. It's terrible. I'm glad we're moving out of this crazy state.