Garamendi’s Plans For Phase II Reform By Robert Warne - October 22, 2003 The insurance commissioner isn’t letting grass grow under recent work comp legislation before unveiling his intentions for further reform.
The recent reform package is an “important step forward in the overhaul of a system in desperate need of repair…but it's not the end of the story. Not by a long shot,” Insurance Commissioner John Garamendi told members of the Los Angeles Treasures Club, today.
This time around, with Phase II of his work comp reform proposal, Garamendi is ready to roll up his sleeves and carve up the holy cow of comp—permanent disability rating.
He said it doesn’t make sense to continue with the current system in which benefits are determined by the skill of a claimant’s attorney, not by the severity of an injury.
The commissioner is currently waiting on the Commission on Health, Safety and Workers' Compensation to recommend a new, more objective method of determining permanent disability and is also reviewing the best practices of permanent disability rating used in other states.
Aside from disability, Garamendi wants to make a push for 24-hour care and bundle coverage for an individual into one policy to simplify who’s responsible for a particular claim.
Garamendi believes that employers could eventually see most of the costs of workers’ compensation phased out altogether through a bundled approach to coverage.
And finally, no reform plan would be complete without addressing State Fund. Garamendi said that premium relief would begin when State Fund starts to pass on its savings from recent reforms if they’re implemented correctly.
State Fund also holds the key to bringing other carriers back into California’s comp market. If State Fund is solvent and financially stable other carriers will be encouraged to compete for a share of its massive book of business.
|