California Insurance Commissioner John Garamendi, at a hearing in the state capital yesterday, told legislators that additional reforms to the state's workers' compensation system could save employers additional billions of dollars. He encouraged members of the Assembly Insurance Committee to take their time on writing new workers' compensation legislation and to get it right. “If the goal is $11 billion and we have $5.5 billion in hand with the cleanup legislation, we're halfway there,” Mr. Garamendi said. To chieve the goal, he said the permanent disability system needs attention. A study by the Commission on Health & Safety & Workers' Compensation of the Rand Corporation will provide a starting point, he said. Addressing workers' compensation fraud problems, he said the system itself leads to ambiguities, inconsistencies and abuse.
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