|
|||
 |
|||
|
|||
 |
|||
|
|||
 |
|||
|
|||
 |
|||
|
|||
 |
|||
|
|||
 |
 |
Standing Up Against the Workers’ Comp Crisis
What you can do!
Rapid increases in workers’ compensation costs are proving detrimental
to many businesses trying to stay afloat in the current economic climate.
By all estimates, last year’s passage of AB 749 will increase workers’
compensation insurance rates by $3.5 billion per year, which makes our
state the most expensive workers’ compensation system in the nation.
However, a few rays of light are beginning to flicker through the storm.
In fact, even Governor Gray Davis is beginning to pay attention to this
crisis.
On April 3, Governor Davis announced he will propose legislation to lower
workers’ compensation costs. According to the Sacramento Bee on April
4, “Davis spokesman Steve Maviglio said that the proposals will reflect
the priorities of the governor and Insurance Commissioner John Garamendi.”
While not specifying exactly what the governor proposes, we know that
on February 26, Insurance Commissioner Garamendi proposed a plan of action
to reform California’s “runaway” workers’ compensation
system. Garamendi announced a plan he devised with the help of two advisory
panels who reviewed the system before he took office in January.
There are seven areas of immediate focus in Garamendi’s workers’
compensation reform plan, including:
· Improved financial oversight;
· Medical cost containment;
· Consistency in determining the level of permanent disability;
· Improved coordination and communication with state agencies regulating
the system;
· Continued aggressive fraud interdiction;
· Creation of a 24-hour medical care system merging health insurance
with workers’ compensation medical care; and
· Development of professional training and quality standards for
claims adjusters and workers’ compensation judges.
“It is clear that the workers’ comp market in California is
broken,” Garamendi said. “We have the highest costs in the nation,
yet our injured workers’ benefits rank in the lower third of all
states. It is a system that is destined to crash if serious structural
change is not enacted. I will do everything to address [employers’]
problem…the real solution [however] lies with the Legislature and
Governor agreeing on a restructuring of the Workers’ Compensation
system.” Employers Group agrees with the Commissioner.
In January, Senator Charles Poochigian introduced a bill (SBX1 1) that
would suspend AB 749 (as well as AB 2509 relating to labor standards and
SB 975 relating to agricultural labor relations) until Governor Davis
issues a proclamation declaring that the California economy has fully
recovered from the recession that began in 2000. Employers Group supports
this bill.
Call to Action
Rather than taking a “wait and see” approach, employers can
take a stand now and indicate their support for the actions taken by Insurance
Commissioner Garamendi and Senator Poochigian. We have provided a link
to a “sample letter” employers can “personalize” and
send immediately to Governor Davis and Commissioner Garamendi. You can
personalize your letter with information about the impact increased Workers'
Compensation costs has had on your business. Click here for sample letter.
Controlling costs now
Here are several workers’ compensation saving strategies that employers
can do to keep their costs under control pending legislative reform.
· Keep employees healthy with health insurance plans that provide
annual physicals (most do) and low cost coverage to encourage them to
get necessary medical care. If you don’t have a wellness program,
start one.
· Illness and Injury prevention insures a safe working place. Inspect
workplaces and equipment often. Train managers and hold then accountable
for safe conditions and practices. Orient new employees about safety and
hold safety meetings. Go beyond compliance with OSHA regulations and examine
workers’ compensation claims to find high risk areas.
· Comply with the law by maintaining your insurance coverage at
all times. Properly display the 2003 edition of the workers’ compensation
poster and provide information to new employees. File reports on time,
particularly any serious injury or death.
· Keep employees happy. A good labor relations program is important.
· Shop for insurance coverage, because rates offered do vary. Contact
insurers directly through your broker, or check with Employers Group about
how to compare rates on an annual basis.
· Maintain contact with your insurer to make sure that cases are
being properly managed and moved toward closure. Set up a periodic review
of all open cases; review job duties and medical findings to determine
whether an employee might be returned to modified duty.
· Maintain contact with injured employees to make sure they are
receiving needed care and support.
· Create a return to work program by offering reasonable work opportunities,
with the doctor’s recommendations as to any temporary modifications,
at the employee’s regular rate of pay. Employees who return to work
quickly have a more successful recovery and save on workers’ compensation
costs. An employee who refuses a reasonable work assignment can be denied
temporary disability payments.
-----------------------------------------------------------------------------
Provided from:
Reaume Financial Group.
2540 Huntington Drive, Suite 202
San Marino, California 91108
Phone: (626) 614-4570
Fax: (626) 614-4576
All Rights Reserved.
last updated: September 3, 2003
 |
||||||
Diversified Risk Insurance Brokers
|
||||||