Lawmakers rush to fix comp flaws

Alicia Robinson

State legislators are playing beat the clock, hoping to agree on

reforms to the state workers’ compensation system by the end of the

day.

But most local observers don’t expect it to do enough to fix the

system lawmakers, employers and workers agree is broken.

Legislators were expected to vote this morning on a bill that

would overhaul a variety of workers’ compensation issues. Full

details were not available, but 70th District Assemblyman John

Campbell said the legislation would set guidelines for doctors on

treatment of certain injuries; change the availability of permanent

and temporary disability to prevent abuse; and lower penalties

charged to insurance companies for missing deadlines to pay workers

compensation claims.

“Quite frankly, I’m not holding my breath that it’s going to be

everything the business community needs and expects and hopes for,”

said Costa Mesa Chamber of Commerce Executive Director Ed Fawcett.

“I’m fearful that it’s going to be so watered down it’s going to be

window dressing.”

Legislators were frantic to pass a bill today because it’s also

the deadline to file signatures to get an initiative on the November

ballot.

Under a plan by Gov. Arnold Schwarzenegger, which he wants to see

submitted to voters, about $11 billion in insurance premium costs

would be cut in an effort to keep more businesses from moving out of

California. Campbell said advocates of the governor’s reform

initiative gathered close to 1 million signatures and were expected

to begin submitting them for verification Wednesday.

After much haggling, legislators agreed in a conference committee

Thursday on a tentative deal that leaves insurance rates unregulated,

a provision that was unpalatable to employers, and requires employees

with injuries to see a doctor from a pool chosen by the employer or

employer’s insurer before picking their own doctor, something

workers’ advocates didn’t like.

“We need premium control,” said Randy Garell, owner of the Grant

Boys, an outdoor and sports gear store in Costa Mesa. “The workers’

comp industry is an economy unto itself. It’s sort of a

self-perpetuating thing the way it’s developed.”

In part because of one worker’s injury claim that dragged on for

two years, Garell said, his premiums have more than doubled over the

past few years, and some business owners have called it quits because

they can’t afford such increases.

Attorney Walter Barsamian, who handles workers’ compensation and

personal injury cases in Newport Beach, said injured workers should

be able to choose their own doctors, which the proposed legislation

would not allow.

“I think that’s a fundamental right that should continue with the

injured worker,” he said.

Campbell said while the compromise bill is not ideal, it’s a start

that could reduce businesses’ premiums by as much as 25%.

“What I have seen is not everything I would like it to be, but ...

I believe it will provide some substantial reform and some

substantial relief,” he said.

Legislators will continue to work on reforming the workers’

compensation system, but the present bill would go into effect

immediately to help businesses now, Campbell said.

Advocates for businesses and workers said they’re not really sure

yet how the legislation might affect them or whether it will spell

meaningful reform, but they were glad to see state officials tackling

the workers’ compensation system.

“I’m happy that the governor has realized that we have a problem

in this area and is taking whatever steps he is taking to try to make

it better,” Garell said. “I think that’s really important that

somebody at the top realized we’ve got a major problem.”

* ALICIA ROBINSON covers business, politics and the environment.

She may be reached at (949) 764-4330 or by e-mail at

[email protected].