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Workers Compensation Savings: Does it add up?

February 6, 2006 by Jonathan Stein

The LA Times is reporting about a report being sent to the Governor and legislature showing state businesses have saved $8.1 MILLION since the Governor’s work comp reforms have been enacted. That is great for California businesses.

However, the problem is that injured employees still cannot receive the services that they need. And this should not be news to anyone. I wrote about this problem back in November, 2005.  At that time, the California Medical Association was concerned that doctor’s were not being paid timely. Doctors were considering whether they should stop treating workers comp cases.

Maybe the Governor, the Legislature and the California Chamber of Commerce should get together and look at the real problem: the insurance companies. As long as rates are not falling as quickly as they should, and payments continue to fall, the insurance companies will make a lot of money from this mess. And, with no real incentive to change their behaviors, you can expect the system to get worse.

Categories: Claims, Current Affairs, Insurance Operations, Law

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