Legislative reforms to California's workers' compensation system have cut costs sharply, according to a study by the state Workers' Compensation Insurance Rating Bureau.
In its 2007 Legislative Cost Monitoring Report, the WCIRB found that fees and utilization of services have been reduced, in some cases heavily, as a result of legislation passed by the state since 2002. The effect of these reductions, the report found, was billions of dollars more than even it had projected.
The bureau initially projected that cost savings from the reform, as reflected by its pure premium filings, would be 49 percent of what the bureau estimated the costs to the system would have been without the reforms, totaling an estimated $10.1 billion.
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