An insurer trade organization said it is joining self-insureds, business groups and municipalities in urging California Gov. Arnold Schwarzenegger to reject a bill that would double benefits to injured workers.
"We will ask the governor to veto it," said Nicole Mahrt, a spokesperson for the American Insurance Association.
The measure in question is being pushed by State Senate President Don Peralta, D-Oakland, who has reportedly said he will beg the governor to sign the bill–SB 815.
Ms. Mahrt said 50 other parties are objecting to the bill, which extends the number of weeks workers' compensation will pay for a disability based on the rating for that particular injury.
Ms. Mahrt said AIA feels that any action to change benefits should await completion of a California Division of Workers' Compensation study of the state's permanent disability rating system, which is underway now. The rating process was changed in 2004 as part of a major revision of the state's workers' comp system.
She also said there were objections to the way in which passage of S 851 was rushed through at the last minute.
The bill would phase-in changes over three years, and apply to injuries on Jan. 1, 2007 or later.
The state study underway now would analyze return-to-work rates, "so we will have an accurate and complete understanding of how the reforms have impacted the system," said Steve Suchil, AIA's assistant vice president for the Western Region. "It is short-sighted to make changes before that study is complete."
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