The State of California Commission on Health and Safety and Workers' Compensation has released a report recommending that the permanent disability schedule proposed by Andrea Hoch, the governor's Administrative Director, and adopted on 1/1/05 has cut benefits to truly injured workers by as much as 50%. Democratic politicians spoke recently to the California Applicant's Attorney Association and promised that the cuts will be addressed in this legislative session. However, leaders of the business community vow to keep the cuts in place.

The result? Windfall profits to the insurance carriers. A widely circulated pie chart shows that of the approximately $24 billion spent on workers' compensation last year, $9 billion was insurer profits and over $7 billion covered insurer's costs and administration. That leaves only approximately $8 billion to fund workers' benefits. Is this right? You tell me...