Calif. Comm. Pushes for WC Reform
Thursday, September 4th, 2003 Workers' CompensationSaying that the time is now for reform, Insurance Commissioner John Garamendi highlighted the plight of nonprofit agencies across the state that have been burdened with soaring premiums due to the condition of the state‘s broken workers‘ compensation system Sept. 3. Garamendi met with representatives from nonprofits in Los Angeles and San Francisco as part of his effort to bring about real reform of the $29 billion system. Medical, legal and administrative costs within the system have increased at an exponential rate, forcing more than two dozen insurers into bankruptcy and burdening employers with the highest premium rates in the nation. Last Friday, Garamendi set the bar for providing relief to employers, informing the Legislature‘s Workers‘ Compensation Conference Committee that $6.25 billion must be trimmed from the system in order to bring premiums back to the 2002 level.
