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March 25, 2024
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Benefits Late Than Never?
By Robert Warne - February 21, 2002

California will no longer rank 49th out of 50 for benefits paid to injured workers now that Gov. Gray Davis signed legislation to increase benefits. Three times similar legislation was brought before Davis, but this time he felt the cost saving reforms included in AB 749 did more than the other bills to offset workers’ compensation costs.

When Davis signed the legislation Feb. 16, he said he was pleased to sign into law the first increase in workers’ compensation benefits since 1996—and the first increase for permanently disabled workers since 1984. He also added that the bill was balanced with significant reforms that will make the system much more efficient and far less costly for employers.

The estimated annual cost of the legislation is $2.4 billion offset by $1.5 billion in cost saving reforms.

Reforms include limiting the presumptive of the treating physician to physicians pre-selected by the injured worker; a generic drugs and outpatient fee schedule; and a return- to-work incentive for employers.

The legislation changed California’s ranking for benefits paid to injured workers, but it doesn’t change the fact that California pays some of the highest workers’ comp related costs in the nation.

adjustercom.com Magazine’s Spring Edition contains an analysis of the legislation and how claims executives see the new law impacting their operations.

 
 

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