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| | A California Editorial On Workers' Comp By Associated Press - July 21, 2005Los Angeles Daily News: "State workers' comp reform has only been partly successful."
When California lawmakers finally responded to Gov. Arnold Schwarzenegger's pressure and agreed to workers' compensation reforms last year, they were confronting a problem that had grown out of control. Insurance premiums were skyrocketing and abuses were widespread. Some small companies faced cutting their staffs while large companies found yet another reason to move operations out of state. State and local governments also struggled with the steadily rising costs.
Reforms that were adopted brought fast relief. Within the year, premiums dropped by double-digit percentages, as much as 40 percent in some cases. Elements of the reform to root out "workers' compensation mills'' helped keep costs from rising.
All this makes it seem as though the workers' compensation reform was a resounding success. And it was, but it didn't go anywhere near far enough, so much work remains to be done.
While the reform has meant deep relief for businesses across the state, many of the same problems persist.
There are still fraudulent claims and abuse of payouts. There are still high premium rates. And, worse yet, there is some evidence that the reforms intended to curb excessive doctor visits have harmed some of those honestly in need of medical care.
This isn't to say that any part of the reforms should be repealed. They ought to be expanded to get the state all the way to a sensible and sane workers' compensation program that protects genuinely injured workers while keeping costs reasonable for business and government.
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