Gov. Arnold Schwarzenegger and legislative leaders appear close
to making a deal on overhauling the state’s incredibly wasteful
workers’ compensation system.
Gov. Arnold Schwarzenegger and legislative leaders appear close to making a deal on overhauling the state’s incredibly wasteful workers’ compensation system.
But if both sides don’t come to agreement soon, it will be left to voters to resolve this contentious, complex issue in November.
Which means that – assuming a comprehensive reform is approved by voters – it would be months before employers would receive desperately needed relief on their soaring insurance premiums and injured workers would receive decent benefits.
The governor is pondering some form of insurance rate regulation to mollify Democratic lawmakers. Curbing insurance companies to cut costs is not the solution. Nearly 80 percent of employers are either self-insured or participate in the state insurance pool.
It’s one thing for the insurance commissioner to help ensure that the savings are passed on to employers rather than to insurers. It’s quite another for the state to mandate the premiums that companies pay to cover their workers.
Such a move would drive insurance carriers out of California, compounding the crisis. The workers’ compensation system is squandering billions of dollars each year.
It’s time to stop dithering and to do something to stop this madness.
