California Worker's Compensation : California Governor says problem is "unscrupulous" lawyers and others — 2005-05-08

	News from around the internet (archived)   11:21AM www.delawareonline.com ¦ The News Journal ¦ Sky-high workers' comp rates stir debate in Dover (Delaware Online) (archived). Almost everyone in Delaware agrees that businesses pay too much for workers' compensation insurance. The state's employers paid the fourth-highest rates in the nation in 2002, the most recent period available, with only Hawaii, Florida and California paying more. Workers' Compensation Industry Leader Jack Webb Dies (The Auto Channel). SAN FRANCISCO, May 3 -- Former State Fund President Jack Webb -- one of the most influential and colorful figures in the 91-year history of California's workers' compensation insurance system -- died May 2nd. Webb had been undergoing treatment for lung cancer. A Petaluma, California resident, he was 69. Webb joined State Fund in 1959 and rose through the ranks to the presidency of California's Workers' comp change could save $98M yearly (Honolulu Advertiser). Workers' compensation rule changes go into effect Thursday that state labor officials estimate will save Hawai'i businesses $98 million a year by streamlining the system and getting treatment for injured workers much faster.

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.

• Re: Comment on post 15 (link unavailable), Charles Wear, 2/16/04; 11:40:43 AM