Newsroom

July 8, 2009 -- Press Release

Statement Regarding Commissioner Poizner's Workers' Compensation Claims Cost Benchmark

The following statement may be attributed to Jerry Azevedo, spokesman for the Workers' Compensation Action Network:

"We support the commissioner's call to look at increasing efficiencies from all segments of the workers' compensation system, although each of his recommendations will require evaluation and some legislation. We also support his plan to assemble an advisory group representing all stakeholders to make recommendations to the commissioner and his staff on how to reduce the key cost drivers in the system."

The commissioner's decision to reject the increase in the Benchmark does not bear directly on the rate that an individual employer is going to pay. In fact, more than 60 individual insurers have already filed their rates for July 1 policies. In all but one case, insurers have filed for rate increases that were below the WCIRB's recommendation, and significantly lower in the vast majority of cases.

"This dramatic range in rates underscores the need to preserve competition to give employers the ability to continue to shop around for the best coverage and price. The rate filings also show that each insurer is being impacted differently by increasing medical costs. Ultimately, individual insurers must price their product adequately to cover anticipated losses from the employers they insure so that medical and cash benefits are there for injured workers when needed."

"California approved Gov. Schwarzenegger's reform of workers' compensation in 2004. This successfully reined in uncontrolled insurance costs that hurt not only businesses, but also school districts and nonprofits. Interest groups now are quietly working to roll back these reforms and should not be allowed to succeed."

- San Francisco Examiner, "Five easy ways to boost economy"