California Introduces New Workers' Comp Overhaul

December 05, 2012

California lawmakers recently approved a workers' comp overhaul. The overhaul will provide those on workers' comp with more benefits and lower costs for employers at the same time. Some feel that the new legislation is a step in the right direction for both workers and employers. But others worry that the system was created too quickly without enough input from people on all sides of the issue.

Creation of the Bill

Several large business and labor groups created the bill for the new system. But some lawyers and doctors who deal with workers' compensation issues, felt they were not brought into the discussion early enough. Still, the bill passed strongly in both the Assembly and the Senate. California Governor Jerry Brown signed the bill as expected in mid-September.

The New System for Workers' Comp

The new system was a response to big problems with the healthcare system in California. The inflation of healthcare costs has posed a problem for insurance companies. Insurance companies increase premiums on employers when the employers renew their policies. Workers' compensation insurance cost rose in California from $14.8 billion to $19 billion in only two short years.

The new system will put into action efforts to simplify the workers' comp processes and decrease fraud. This is expected to remove millions of dollars in costs. The costs will then be directed to employers for insurance costs and to increase payments to disable workers themselves. Supporters of the new system claim that it is designed to keep insurance rates from drastically increasing even more.

A History of Unfair Comp

Eight years previously a reform measure in California decreased benefits for permanently disable workers. Under this law, some disable workers had their medical needs delayed or denied by insurance companies. Many have struggled as a result. The new bill would increase workers comp payments made to permanently disabled Californian workers by approximately $740 million per year.

Opponents of the New System

Not everyone feels that the bill is a good change. Opponents of bill include some disable and injured workers and their lawyers. They worry that the bill was formulated too quickly in just 9 months. Some are concerned that it could actually reduce the benefits for workers who are too injured to return to work because the new legislation limits litigation.

If you or a family member is struggling to obtain or sustain workers' comp after an accident, you may need assistance. An attorney can help you get the compensation that you need until you can return to work.

Article provided by The Law Offices of Scott Warmuth
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