Entries for 2005/07/16 — 2006-12-06
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No political will to change SB 899 in any way...
There is no political will to alter the SB 899 reform legislation in any way by any of the stakeholders, the legislators, the governor, or in the appeals courts. This is the story that drives this lack of political will: 1) Workers' Compensation Insurance premiums were way too high, driving good employers out of the State [medical costs were out of control]; 2) The law was unfair, rewarding uninjured people with huge awards obtained by unscrupulous attorneys and approved by equally unscrupulous judges; 3) Honest insurance carriers could no longer compete and were driven into bankruptcy by the rampant fraud; and 4) If something was not done about this state of affairs, then politicians would be VOTED OUT OF OFFICE. As far as the legislature is concerned there was a huge increase in benefit rates in 2003. The fact that awards have now been cut from 50-70% is not yet accepted as a fact. Old cases may keep applicant attorneys going for a while until the defense bar and carriers, emboldened by the actions of the administrative director, refuse to settle any more cases under the old schedule. This will grind cash flow to a halt. And if the carriers are successful in making this tactic stick, they will receive the largest windfall in insurance history. The pre-1/1/05 cases were reserved under the old schedule. If they settle under the new schedule the profits will be astronomical. > posted by Charles Wear > 7/16/05; 6:01:59 AM |