Proposed workers' compensation reform legislation introduced inthe California state legislature is getting a thumbs down frominsurance trade groups.

The bill, S.B. 863, crafted by labor and employers, aims toreduce costs within California's workers' compensation system byattacking cost-drivers in order to finance an increase in paymentsto those on the WC permanent disability rolls. It has the supportof State Insurance Commissioner Dave Jones.

But officials of the American Insurance Association and theAssociation of California Insurance Companies say thelegislation would increase benefit payments to those on permanentdisability immediately while relying on cost-cutting that a newanalysis says might not be realized.

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