Entries for 2004/02/15 — 2005-05-07

From a February 11 News Release: (archived) "SACRAMENTO, CA – Injured workers’ advocates today renewed their call for workers’ compensation insurance rate regulation, and called Insurance Commissioner John Garamendi’s proposed changes “incomplete” for failing to include caps on rates, and “flawed” for sentencing injured workers to live in pain, without adequate treatment. “After injured workers’ benefits were cut by more than $5 billion last year, most insurers did nothing but pocket record profits. The Commissioner would reduce benefits to injured workers but allow unlimited profits for insurance companies. Garamendi’s plan includes a floor on rates, but no ceiling, so insurance companies can continue to gouge California employers. That’s not right,” said David Schwartz, President-Elect of the California Applicants’ Attorneys Association (CAAA). “Garamendi’s plan takes away benefits from injured workers, benefits that are already too low. You can cut injured workers’ benefits down to zero, and without regulation insurance companies may not reduce premiums by a single dollar.” "

The Governator says that the problems with the Workers' Compensation system in California can be traced to "unscrupulous" lawyers, among others.

Quoting Gov. Arnold's campaign site (link unavailable):

"The only people who are sure to benefit from this costly broken system are the unscrupulous medical providers, lawyers and un-entitled claimants who have learned to game the system at the expense of California's employees and employers. In the end, workers' families lose, especially the millions whose jobs may be in jeopardy due to the rising cost burden on employers. "

If one is not burdened by the truth, then statements such as this one should be allowed to stand...However the truth is that in 1913, employers, workers and the state made a constitutional pact that established a system which would give workers injured on the job access to medical treatment and benefits and relieved employers from the significant liability of personal injury lawsuits for work injuries.

The system benefits mostly claimants who are entitled benefits. Fraudulent claims are a fraction of 1 percent of those filed.

As one of those lawyers who works on behalf of injured workers, I can state that the fees earned are paid by the workers from their benefit payments and never exceed 15% of recovery. If anyone is trying to game the system, it is insurance carriers who have posted millions in profits from investments, and apparently are greedy for more.