Home page — 2005-07-16
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Supreme Court dashes hope for early relief
Lawyers for injured workers and injured workers are bound to be disappointed by the California Supreme Court's rejection of their lawsuit against the new permanent disability schedule. At the crux of the suit was the argument that Administrative Director, Andrea Hoch, exceeded her statutory powers and did not follow the law as it was clearly deliniated in SB 899. VotersInjuredAtWork and the California Applicant's Attorney Association had hoped that the Supreme Court lawsuit would shortcut the litigation process that must be followed to overturn the schedule. Essentially that process will require a trial at the district office level, an appeal to the Workers' Compensation Appeals Board, then an appeal to the Court of Appeals. This is a process that, if it started today, would probably take at least 18 months. > posted by Charles Wear > 7/15/05; 5:58:28 AM Rate regulation bill dead... The assembly insurance committee voted 4-0 to table Alarcon's rate regulation bill. Another example of the complete lack of political will to do anything to correct problems associated with workers' compensation reform legislation. In this case, insurance carriers are reaping profits by collecting premiums that far exceed the benefits provided. The employers have yet to see much relief for all of the cuts while injured workers continue to feel the pain. > posted by Charles Wear > 6/30/05; 5:58:10 AM For wishful thinkers appeals court decisions are painful Wishful thinkers are relying on the good graces of the courts of appeal and the supreme court to overturn the draconian effects of SB 899. In particular, the new rules on apportionment and the new permanent disability schedule. They took heart in the WCAB decision in Scheftner which said that SB 899 did not apply to cases in which discovery was closed pending trial. In the recent decision, Marsh v. WCAB, the Fifth Disctrict Court of Appeals puts another nail in the lid of the coffin burying pre-existing benefits for injured workers. In Marsh, the injured worker's case had been tried and a decision issued. The employer's petition for reconsideration opened the case to SB 899 and the new apportionment rules. The clear ruling of Marsh says that SB 899 apportionment applies to all cases that have not had their writ of review denied by the Court of Appeals. The effect of this decision will be to grind all pre-SB 899 cases to a halt pending further medical reports. It also confirms the facts of the situation for the wishful thinkers. SB 899 represents, depending on your perspective, a political solution to cut workers compensation benefits in every area, medical treatment, temporary and permanent disability benefits, and by any means. The Court of Appeals has recognized this legislative intent and has determined to carry it out. Those practioners hoping that the courts will overturn the new permanent disability schedule had better hold off on making down payments on new California real estate. Their cash flow is definitely going to suffer along with the injured workers. > posted by Charles Wear > 6/29/05; 6:05:06 AM Applicant's attorneys hear legislator's "mea culpa" Friday at the California Applicant's Attorney Association summer convention, the "congregation" heard several democratic legislators utter their apologies for their votes on SB 899. "It was a mistake" said Assembly Speaker Pro Tem, Dr. Leland Yee of San Francisco.
Of course, here's the problem: the mistake cannot be corrected. There is no political will to do so. There are lawsuits pending to declare the new permanent disability schedule "illegal." Are these the only hope for injured workers? That appears to be the situation.
> posted by Charles Wear > 6/26/05; 6:46:13 AM
"Workers' comp has seen the last of John L. Burton," the then-Senate
president pro tem said after hammering out a sweeping compromise
package with the governor. Today, Burton has resurfaced along with influential lawyers, doctors and labor leaders to protest the way the workers' compensation overhaul will be enforced. The renewed fervor comes 12 months to the day after a jubilant Schwarzenegger signed the landmark bill, SB 899, and bid "hasta la vista" to the ills that plagued the state-run program to treat job-related injuries. Over the next eight days, workers' compensation will take center stage again in a flurry of protests and regulatory and legislative hearings. At stake are summer insurance rates paid by employers and the job of a key Schwarzenegger appointee charged with carrying out the workers' compensation overhaul that the governor considers a cornerstone of his economic recovery strategy. "The unions and the disability groups have learned that demonstrations work with this governor. They are saying, 'It's not over; you haven't fixed it,' " said Barbara O'Connor, director of the Institute for the Study of Politics and Media at California State University, Sacramento. On tap: * Around California today, hundreds of demonstrators - many of whom are injured workers - are boarding more than a dozen buses for rallies outside the Capitol in Sacramento and the Ronald Reagan state building in downtown Los Angeles. The demonstrations are spearheaded by the California Labor Federation and Voters Injured at Work, a political action group backed by the California Applicants' Attorneys Association. Another coalition of injured workers plans to protest outside an insurance company office in Rancho Cordova. * On Monday in San Francisco, Insurance Commissioner John Garamendi will consider an industry group's recommendation for a 10.4 percent rate cut in July - one of the largest proposed by the Workers' Compensation Insurance Rating Bureau of California. Since January 2004 - when the first of a series of workers' compensation laws took effect - Garamendi has urged insurers to reduce rates about 24 percent. Carriers, though, have been slower to follow suit, reducing rates 13.9 percent to 16.6 percent. * In a political showdown on April 27, the Senate Rules Committee will hold a confirmation hearing for Andrea Hoch, administrative director of the Division of Workers' Compensation. Appointed by Schwarzenegger in April 2004, Hoch can serve one year without Senate confirmation. Labor leaders and groups for injured workers are trying to oust Hoch, a former state prosecutor, over the new rules that dictate how medical treatment and disability benefits are determined. In a pre-emptive move Monday, Hoch released a progress report on SB 899 and predicted that by late 2005, employers will see insurance rates fall by more than 26 percent from their 2003 peak if carriers pass along all the recommended rate cuts. "Drafting these regulations is a vital part of implementing the reforms," Hoch said in a statement. But two weeks ago, Burton assailed Hoch for her proposed regulations to decide permanent disability benefits. He said he felt "betrayed" because the legislation wasn't meant to cut benefits or deny treatment for severely injured workers." > posted by Charles Wear > 4/19/05; 6:46:55 AMWorkers caught in the gap... Workers with 2003-2004 are finding it difficult to end their case. With benefits cut off they don't understand why the "reform" applies to their injury. Read the entire article here >>> (link unavailable). > posted by Charles Wear > 4/18/05; 6:26:31 AM Governor gets credit for rate reductions... The rating bureau has recommended a 10.4% reduction in workers' compensation rates. Governor Arnold gets the credit in this editorial comment >>> (archived). It is more likely that these reductions are related to the implementation of medical fee schedules and utilization review that were signed into law by Governor Gray Davis. The SB899 reforms have not yet been implemented. Furthermore, as of this date, there is little indication that premium reductions have been passed on to employers in any meaningul way. > posted by Charles Wear > 4/15/05; 7:11:47 AM Insurers complain about rate regulation A recent article in Insurance Journal complains about the rate regulation bill that is making its way through the State Senate. Read the entire article here >>>. > posted by Charles Wear > 4/13/05; 7:06:57 PM Politicians should remember what happened last time... From the San Francisco Bay Guardian: "WHEN THE DEMOCRATIC leaders in the state legislature sit down to negotiate this year's key issues – primarily education and a spending cap – with Gov. Arnold Schwarzenegger, they need to remember what happened the last time they cut a deal with the governor on a major policy issue. That was last year, and the issue was workers' compensation. The results, even key Democrats now admit, were disastrous." Read the rest of the article here >>> (archived). > posted by Charles Wear > 4/12/05; 6:19:28 PM An Open Letter to Andrea Hoch... SB899/ I am Disabled for Ever Dear Andrea Hoch, My cervical injury has left me permanently disabled and I am in extreme pain for the rest of my life. SB899 has just started to effect me. A third Co. started sending me letters, telling me what treatments were acceptable, and to my treating physician. I have been this way for a few years now. Starting last month a Dr. in FL.or IL., with a CA medical Lic., has started making decisions, out of the blue, on my medical treatments. I have lost one treatment already. They are trying for a second. They just started refusing to pay for a past accepted treatment. I can't afford them I am on SS Disability. Now I have heard that I may lose my right to select my own Drs??? Are all my rights gone due to the fact that I was injured on the job? I do know that my right for effective medical treatments are being taken away.My income and my life have been greatly effected. As of now the insurance co will not, with DR's advice and information, do what is needed to help me.. And this is FOREVER. Caused by ergonomics and being 5"2'. I worked there for 18 yr. and liked my job. I am also confused as to what they are going by. I have read the RAND report, Nov 2004 and it was talking about AASO,ACOM,IntaCorp,etc and then I see in the paper that it's the AMA? Please help make changes to SB 899 it may help CA. business. It does not seen to be helping the working people in CA..or me. I would think that there are more working people in CA than businesses. How much profits do the insurance companies make or is that private info.? What have I done to deserve this treatment for the rest of my life, I am not that old. Thank you for your time, Placerville , CA > posted by Charles Wear > 4/11/05; 6:43:48 AMCarpal Tunnel "epedimic" "As our reliance on computers increases, Repetitive Strain Injuries (RSI) such as Carpel Tunnel Syndrome (CTS) are hitting epidemic proportions. More than 28 million Americans use computers each day and, according to officials at the Occupational Safety and Health Administration, (OSHA) many risk coming down with carpal tunnel syndrome, the painful, debilitating condition that is the number one disability reported by insurance companies today." Click here for the full article >>> (link unavailable). > posted by Charles Wear > 4/8/05; 3:52:50 AM Burton regrets reform From the San Francisco Chronicle (archived): "Former state Sen. John Burton said Monday he feels betrayed by new rules that will cut disability payments to injured workers and regrets helping Gov. Arnold Schwarzenegger steer a workers' compensation reform bill through the Democrat-controlled Legislature in April." > posted by Charles Wear > 4/5/05; 5:58:46 AM |