FLASH REPORT! Workers’ Comp Reform Bill Signed

FLASH REPORT! Workers’ Comp Reform Bill Signed

Gov. Jerry Brown has signed SB 863, the comprehensive workers’ comp reform bill that Sen. Kevin DeLeon (D-Los Angeles) sponsored. Brown’s administration worked behind the scenes to assure its passage. The negotiated deal between big labor and big business sets into motion a process designed to lower costs for employers and raise benefits for injured workers and their attorneys.

The benefits to injured workers will ultimately increase by more than $700 million beginning January 1, 2013 and continuing the following year.

The projected savings to the employers, which fund the workers’ comp system, are said to come from reducing frictional costs, delays in care, and the addition of some new price controls on services.

Supporters maintain that these changes will not only offset the mandated increase in permanent disability benefits, but will produce actual system-wide savings. Estimates, however, vary widely and will depend on the effective implementation of the bill’s provisions and the ability to withstand the inevitable challenges in court.

A 12.6 % pure premium price increase has been requested by insurance carriers to be effective January 1st, 2013 contemporaneously with the legislation. It is pending likely approval by Insurance Commissioner Dave Jones.

Comes now the litigation to see what will really happen.