Calif. Legislator: $2.5 Billion Comp Hike Near

By Caroline McDonald

NU Online News Service, Jan. 28, 1:01 p.m. EST?The chairman of the California Assembly Insurance Committee said he expects to see passage by Thursday of a workers' compensation measure providing a $2.5 billion benefit increase.

Assemblyman Tom Calderon, D-Montebello, said in a statement that he and State Sen. John Burton, D-San Francisco, are confident that discussions with the Governor's office "will result in final language and passage of a bill before the end of the month."

Industry insurance trade organizations said they are doubtful the bill will solve workers' compensation woes in the state and voiced concern the measure is being rushed through without input from insurers.

Rep. Calderon said that negotiators have been working around-the-clock on final details of California's long-awaited workers' compensation reform measure.

The bill, AB 749 authored by Rep. Calderon and Sen. Burton, includes a benefits increase for injured workers, proposed disability and life pensions and doubled fraud penalties, according to Rep. Calderon.

The bill, he said, also reforms and expedites medical information transfer, authorizes a cost-containment study, requires additional medical training and education for treating physicians, clarifies death benefits distribution to surviving dependents, alters the State Fund governing board and business practices, and eliminates the presumption of correctness by the treating physician.

Nicole Mahrt, director of public affairs for the American Insurance Association in Sacramento said she is "anxious to see what is in the bill. We still don't have a clear picture and it's frustrating that all this is going on and we're not allowed to sit at the table."

She continued that "we believe that this will be rushed through the process and that what was probably a $3 billion piece of legislation could potentially not have a full policy hearing--and it didn't have a full hearing last year."

Rep. Calderon said the workers' comp reform bill provides $2.5 billion in benefits increases and $1.5 billion in systemic cost savings. "At the end of the day, this $1 billion (net) bill is costing employers only 1 penny per employee per hour. This is clearly a win-win for everyone involved," he said.

But Ms. Mahrt remains doubtful. "Quite frankly, election year politics is really what's guiding this whole process," she said. "I don't think you're looking at a bill that's drastically different than what the governor vetoed in October. Our question is ?what's changed?'"

Special Reports /

Calif. Legislator: $2.5 Billion Comp Hike Near

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