Home page — 2005-01-26

State Fund unveils medical provider network...

State Compensation Insurance Fund, California's largest workers' compensation insurer has unveiled its medical provider network which includes physicians from Blue Cross, Kaiser and others. Spokespersons claim that physician choices will not be curtailed. See the Sacramento Bee article here >>> (archived)
> posted by Charles Wear > 1/26/05; 6:12:33 AM      Comment [0] (link unavailable)

Action group for injured workers forms....sues!

Voters Injured at Work has joined with the California Applicant's Attorney Association to file suit to stop implementation of the proposed permanent disability evaluation schedule. It seems the courts will be left to decide. There is apparently no political will left in the legislature to deal with the draconian cuts the administrative director, Andrea Hoch, is proposing.
> posted by Charles Wear > 1/23/05; 7:54:42 PM      Comment [0] (link unavailable)

Premiums make double digit drops...

Workers' compensation insurance premiums have dropped in the double digits in the last six months according to the article posted here >>> (link unavailable)
These drops are not deep enough, or quick enough to please governmental officials and employers. One question that keeps coming to mind: Why should California's workers' compensation costs be anything less than the highest in the nation? I know this is always quoted as a bad thing, but do we want to be lower than who? South Dakota?
> posted by Charles Wear > 1/20/05; 12:22:59 AM      Comment [0] (link unavailable)

Governor to cut public pensions

One of the ways the Governor will cut state expenditures is by changing the public pension program from defined benefit to defined contribution. This simply means that retiring public employees will receive lower pension benefits, making state jobs less attractive. This isn't always clear from the news reports. Read an article on the subject here >>> (archived)
> posted by Charles Wear > 1/17/05; 1:02:54 AM      Comment [0] (link unavailable)

Apparently Gov. Arnold doesn't believe in his own reforms...

The governor has proposed 30% increases in the State's workers' compensation budget over the next two years. Is this an example of the savings and efficiency he is bringing to California government? See the full article here >>> (link unavailable)

Draft Michael Douglas, or Martin Sheen for governor in 2006. Or what do you think, would Rob Reiner have a chance?
> posted by Charles Wear > 1/14/05; 2:12:07 PM      Comment [0] (link unavailable)

Study shows that windfall to workers is not cause of crisis

A recent study conducted by the Public Policy Institute of California says that the cause of the alleged workers' compensation crisis is neither a sudden jump in claims, nor a windfall in benefits to workers. For the entire article click here >>> (link unavailable)
> posted by Charles Wear > 1/14/05; 2:01:01 PM      Comment [0] (link unavailable)

Some are helped, some are hurt....

Reforms are helping some employers and injured workers and hurting others. You can read more here >>> (archived)
> posted by Charles Wear > 1/11/05; 8:05:16 PM      Comment [0] (link unavailable)

Hang on to your hats, 2005 will be a wild political ride

The terminator has picked a fight with educators, public employees, correctional officers and the legislators. This LA Times article outlines the situation clearly. (link unavailable)

This means that a special election is inevitable. Watch carefully, the insurance carriers and businesses may take this opportunity to attempt to eliminate workers' compensation benefits. Here's the question, will the people let them do that?
> posted by Charles Wear > 1/9/05; 11:39:52 PM      Comment [0] (link unavailable)

Oh boy, make things more complex, then impossible!

Via WorkCompCentral.Com:
"Is California reform going too far? Though barely mentioned in his State of the State speech Wednesday, Gov. Arnold Schwarzenegger's proposal to wrap the Workers' Compensation Appeals Board, the Unemployment Insurance Appeals Board and the Occupational Safety and Health Appeals Board into one, nine-member commission has many in the industry alarmed and concerned that the technical specialty needed to resolve policy rendering decisions will be lost."

With 15 years of experience in practicing worker's compensation law, and constant continuing education, I am able to somewhat competently handle a system that with the SB899 reform has been made more complex.

Now, in the name of savings, the Governor proposes that, for the sake of streamlining government, three areas of the law should be overseen by one board. It is highly unlikely that persons experienced in other areas of Labor Law will be able to navigate the workers' compensation system.
> posted by Charles Wear > 1/7/05; 7:55:51 PM      Comment [0] (link unavailable)

Insurance industry happy with reforms

Responding to Sen. Alarcon's call for rate regulation, Insurance industry spokesman says Sam Sorich says: "Workers' compensation rates today are falling and the future looks even brighter as more insurers enter the California market and the reform package is fully implemented," Sorich said. "The reforms not only stabilized a once-turbulent system, they reversed a devastating trend of rate hikes that were suffocating California's business community." Read the entire article here >>>
> posted by Charles Wear > 1/7/05; 2:57:21 AM      Comment [0] (link unavailable)

So now the Governor takes on the government

Now the governor is taking on the government, on behalf of the people, of course. Governor Arnold will cut public employee pension benefits, renegotiate and revamp the correctional system, redo the budget system, restructure government, get rid of those teachers that are getting higher pay because of longer tenure, and, oh yeah, leap tall buildings with a single bound. And of course, if the legislature doesn't comply, then he'll do all of the above with the super-legislature, the initiative process, using paid signature gatherers and 30-second spots paid for by the special interests that benefit from these reforms to persuade voters to "fix" the state. I hope he does a better job with this than he and the legislature did with workers' compensation.
> posted by Charles Wear > 1/5/05; 11:13:05 PM      Comment [0] (link unavailable)

Candidates for governor...

Who will stand up to the Terminator-Governor? I have a couple of recommendations. Both have played chief executives. Both have name recognition. Both have personal wealth. I think either could be winners. My nominations? Michael Douglas or Martin Sheen...What do you think?
> posted by Charles Wear > 1/4/05; 6:33:32 AM      Comment [0] (link unavailable)

Employer-Insurer Nirvana has arrived

Effective January 1, 2005, employer and their insurers now have the right to control injured worker medical treatment through medical provider networks. A permanent disability schedule designed to promote "objectivity and predictibility" is predicted to cut injured worker benefits by 60%. The elimination of "dueling doctors" is expected to reduce litigation.

On the injured worker's side of the balance sheet, employers are now required to provide medical treatment up to $10,000 up to the moment of denial of the claim.

These "reforms", some would call them massive cuts and elimination of choice and due process, are supposed to lead to lower workers' compensation premiums. Keep an eye on the premiums and insurance carrier profits in 2005.
> posted by Charles Wear > 1/2/05; 1:40:55 PM      Comment [0] (link unavailable)

The Democratic Legislature can't stand up to the Governator...

Gov. Arnold continues his political tactics. Unless major changes are made, he threatens the legislature with a "special election" and  ballott initiatives. It's this tactic that has left injured workers high and dry and employers lining the pocketbooks of insurance carriers. And a democratic leader plans to offer an olive branch to the Governor on the occasion of his State of the State speech. He will probably call them "girlie men" and whip them with the branch. Read more about it here >>>

Tell me, are Big Labor, and the traditional Democratic coalitions so weak that they can't find the wedge issue that will stop the Governor in his tracks. Or is everyone desperate for an autograph? Time will tell.
> posted by Charles Wear > 1/1/05; 1:07:46 PM      Comment [0] (link unavailable)

Who can stand up to the governator?

Here's a question for 2005. Is there a Democrat who can stand up to the terminator-governor? What characteristics are necessary? I have a few in mind:

1. Instant name recognition. 2. Personal wealth. 3. Ability to raise money. 4. Ability to mobilize coalitons of support.
   
   

Why is this an important question? If there is no one to stand up to the governor, the rights of injured workers will be devastated. As it is, no injured worker is made whole from the effects of his or her injury. If the perfect storm combination of Big Business [Chamber of Commerce], Big Insurance [the Workers' Compensation Carriers who are getting rich at the expense of employers and injured workers], and Big Politics [the face of which is our movie star turned governor] is allowed to continue unchecked, then workers will be injured with little medicare and no attempt to compensate them for their losses, which have occurred through no fault of their own.

Who do you think can stand up to the governator?
> posted by Charles Wear > 12/31/04; 6:06:19 PM      Comment [0] (link unavailable)

California employment law changes for 2005

There are a number of changes in California law affecting employment and labor starting Jan. 1, 2005. For a recap click here >>> (link unavailable)
> posted by Charles Wear > 12/30/04; 3:20:04 PM      Comment [0] (link unavailable)

Underwriters pleased with new permanent disability rating scheme

The national underwriters journal posts an article indicating the insurance carriers pleasure with the new rating schedule. See the article here >>> (archived)
A recent study shows that awards for permanent disability will be reduced by 2/3. This is what the carriers call objectivity, while they refuse to reduce rates to their customers. Where are all the savings going?
> posted by Charles Wear > 12/29/04; 7:17:54 PM      Comment [0] (link unavailable)

Legal fights brewing?

Read this Reuters article >>> (link unavailable)
The new system for permanent disability is likely to cut benefits to injured workers in a draconian way. The State Constitution and the Supreme Court may be the last bastion defending the "social contract" that is the workers' compensation system in California. That contract had injured workers giving up their right to sue employers in return for a speedy and just benefit system. Fireworks of the political and legal kind are in store.
> posted by Charles Wear > 12/28/04; 8:43:57 PM      Comment [0] (link unavailable)

While partisan politics rears its head, here's a prediction...

Partisan politics is back in full force according to this LA Times article>>>
Here's a prediction. "Big Business" and "Big Insurance" will not be satisfied with the worker's compensation reforms, most of which will not go into effect until next week and they will make a major attempt to change the system again. Too many changes, too fast, and the benefit delivery system is likely to break down.
> posted by Charles Wear > 12/27/04; 7:23:45 PM      Comment [0] (link unavailable)

Hurry up regulations will hurt injured workers...

From the LA Times: "SACRAMENTO — The Schwarzenegger administration has proposed a sweeping set of regulations aimed at revising how workers' injuries are evaluated and their compensation is calculated...

SB899 should have been titled, "The Insurance Carrier Welfare Act." The bill applies to all claims, not matter what injury date in a number of significant ways. The most important of which is the new Labor Code section 4663. These sections allow apportionment to "causation." In other words, if you are older, with weaker joints and bones, and you get injured on the job, the carrier pays less money.

Cases currently set for trial are being taken off calendar or continued to allow the defense to obtain medical reports that address this issue. In other words, to reduce the benefits for injured workers. Premiums for most of these cases were collected long ago. Reserves were established. This means that the insurance carriers will get a windfall on a reduced payout of benefits.

State Compensation has announced premium cuts of 7% (link unavailable). For all of the talk about how reform of the system will cut costs, there is no mechanism to guarantee that if costs are cut, that premiums will be reduced. Watch for the profit announcements from major worker's compensation carriers over the next year.