In recent months there has been a lot of discussion by lawmakers
attempting to make changes to the workers compensation system.
Recently, changes were made by state legislators and signed into
law by Gov. Davis. The changes that were made are supposed to save
$5 billion to the workers compensation system. Although changes are
welcome, unfortunately, these changes are feeble attempts on the
part of the lawmakers in Sacramento.
In recent months there has been a lot of discussion by lawmakers attempting to make changes to the workers compensation system. Recently, changes were made by state legislators and signed into law by Gov. Davis. The changes that were made are supposed to save $5 billion to the workers compensation system. Although changes are welcome, unfortunately, these changes are feeble attempts on the part of the lawmakers in Sacramento.
It has been reported by an insurance industry spokesperson that this $5 billion savings will amount to perhaps a 3 percent decrease in employer premiums this coming year. How can saving $5 billion result in only a 3 percent reduction to employers? That minor decrease is an insult to all employers when you consider that just recently many small businesses have received notices that their premiums are going to increase by 25 percent or more!
Even the Insurance Commissioners recent predictions that employer’s premiums might decrease by up to 15 percent are meaningless when you consider that over the last two years, employers have seen their rates go up by 100 percent or more!
In order for employers to see meaningful reductions in their premiums, the system needs to be simplified and common sense changes need to be made to the system by our state legislators.
The following are some suggestions that I feel could make a difference and, if implemented, could produce real reform.
1. Do not allow doctors, hospitals and other medical providers to charge more for treating workers compensation patients.
2. Simplify the treatment process. Do not impose treatment plans that doctors must follow when treating workers compensation patients. Doing so will simply increase the cost of treatment. Doctors should treat workers compensation patients no different than a regular patient with the same injury. The object should be to treat the patient’s injury and try to get them back to work as soon as possible.
3. Do not allow insurance companies to increase premiums of employers just because they file a claim.
4. Once a doctor determines that an employee can return to work, all other types of treatment should be terminated whenever possible or as soon as possible.
5. Eliminate questionable practices on how employer’s premiums are determined, in particular the construction trades where each trade has two rates. Some examples are: In the masonry trade, if an employee is paid more than $20/hour, the employers rate is $17.94/100 and if the employee is paid less than $20/hour, the employers rate is $39.99/100. In the carpentry trade, if an employee is paid more than $22/hour, the employers rate is $20.66/100 and if an employee is paid less than $22/hour, the employers rate is $58.57/100.
Why the two rates? Are construction workers who are paid less than $22/hour more likely to get injured on the job? Of course not.
Is it more expensive to treat a construction worker who makes less than $22/hour? No.
Should insurance companies and special interest groups attempt to dictate what an employer pays his employees? Absolutely not!
Having two rates for some employers is wrong and this practice should be eliminated!
6. Compare California’s workers compensation system to other states where costs are lower and adopt cost saving ideas from other states. That will decrease costs to our workers compensation system in California.
7. Implement changes to reduce fraudulent claims. Workers compensation claims should be limited to strictly real physical injuries that are work related. Frivolous claims dealing with or related to work stress should not be allowed.
Let’s hope that our new governor and state lawmakers have the will, commitment and courage to make much needed common sense changes to the workers compensation system. They need to reduce premiums substantially for all employers in California as soon as possible. If real reforms are not forthcoming, maybe it’s time for the legislature to consider the idea of regulating the workers compensation system again.
Aurelio Zuniga,
Retired businessman,
Hollister
