Calif. Gov. Davis Agrees To Comp Package
By Caroline McDonald
NU Online News Service, Jan. 31, 4:31 p.m. EST?California Gov. Gray Davis struck a deal with legislative leaders this afternoon for a workers' compensation reform bill including a $2.5 billion benefits package.
The long-anticipated agreement came after extensive negotiations between the governor's representatives, Assembly Insurance Committee Chairman Tom Calderon, D-Montebello and Senate President John Burton, D- San Francisco.
"All told, this workers' compensation reform bill provides $2.5 billion in benefits increases and $1.5 billion in systemic cost savings," Rep. Calderon said. "At the end of the day, this $1 billion (net) bill is costing employers only 1 penny per employee per hour."
Valerie Martinez, his spokesperson in Sacramento, said, "The bill will move on Monday out of the Senate and it should be hitting the floor of the Assembly on either Wednesday or Thursday."
The bill, AB 749, includes a benefits increase for injured workers, proposed disability and life pensions, doubles the fraud penalties, reforms and expedites medical information transfer, according to a statement by the office of assembly Calderon.
The bill also 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 treating physician presumption of correctness.
"This is clearly a win-win for everyone involved," Rep. Calderon said.
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