The pendulum has swung too far in our workers' compensation system. Permanently disabled workers have had their benefits slashed by nearly 70%. Medical treatment for injured workers continues to be delayed and denied. Employers have saved over $14 billion in costs.
And the insurance companies are making historic profits. For every dollar in premium they collect, they are paying out, on average, 36 cents in benefits and 37 cents is going to profits. Insurance companies are making more in profits then they are paying out in benefits. This inequity is outrageous.
That's why we are sponsoring insurance rate oversight legislation (AB 2692, Hernandez). This bill would require the Insurance Commissioner to set a floor on how much insurers must spend on benefits by establishing a minimum loss ratio. For insurance companies who don't meet the minimum loss ratio, the Insurance Commissioner would impose rate oversight.
California Labor Federation is sponsoring these bills this year to restore some fairness to the system:
- Workers’ compensation coverage database. (AB 507 – De La Torre). This bill would create a publicly accessible database with information on the workers’ compensation coverage provided by employers. Such information would allow: employees to submit a claim directly to the insurer; employers to check the insurance coverage of subcontractors; and, medical providers to bill insurers directly. This bill will also help root out workers’ compensation fraud in the system.
- Pre-designation of treating physician. (SB 1338 – Migden). Our right to see our own doctors if we get injured on the job will expire on December 31, 2009 unless a new law is signed. This bill would delete that sunset date and allow injured workers to see their own physicians.
- Insurance rate oversight. (AB 2692 – Hernandez) Governor Schwarzenegger and a majority of the legislature last year supported establishing a medical loss ratio of 85% for health insurers. Such a loss ratio would require insurance companies to spend a minimum level of insurance premiums on benefits and limit their administrative costs and profits. Workers’ compensation insurance companies paid out, on average, just 36 cents in benefits for every $1 dollar they took in premiums in 2006. These insurance companies should be subject to a minimum loss ratio or face regulatory oversight. This bill would require the Insurance Commissioner to set a loss ratio for workers’ comp insurers and, if a minimum loss ratio is not met, impose regulation.
For more detailed information, see the Federation’s workers’ compensation report
Guidebook for California’s Injured Workers This guide helps California workers with job injuries understand their legal rights and responsibilities, and outlines the steps to take to request workers' compensation benefits.
California Division of Occupational Safety and Health The state’s Department of Industrial Relations provides information on injury prevention, public safety, filing a complaint and more.
WORKSAFE! a broad coalition of Californians in favor of worker occupational safety and health protection.
AFL-CIO Safety and Health at Work Click here for the latest news and resources on federal health and safety issues.
Voters Injured at Work a non-profit political organization that advocates for fair and adequate compensation for injured workers.
Contacts
- Angie Wei, Legislative Director (Workers' Compensation)
- Caitlin Vega, Legislative Advocate (Wage and Hour, Public Employees, Low Wage Worker Issues, Underground Economy, Right to Organize, Immigration)
- Jeremy Smith, Legislative Advocate (Family Leave, Worker Health and Safety, Offshoring, Election Reform, Labor Education, Green Jobs, Toxics in the Workplace)
- Emily Clayton, Policy Coordinator (Healthcare)
- Shawna Manning, Legislative Office Manager