History and Victories of Workers Compensation Insurance California

Created in the year 1913 the workers compensation insurance California system constitutionally provides every employee injured at work with the right of compensation and all the medical treatments required for the injuries. In the late 1990s this system of workers compensation insurance California began to experience huge cost escalations. Such an increase in costs were the result of provisions of above-normal monetary compensation over utilization of medical services and increased litigation costs.

The workers compensation insurance California crisis was at its peak in 2003. Almost all the employers in the Californian state were experiencing double-digit increases in their insurance premiums making California the state with the largest premiums. Between 2002 and 2004 the California legislature passed four noteworthy reform regulations in order to curb the situation. The major victories of these reforms were:

• Offsetting the necessary upsurges in permanent disability benefits and lowering system costs for employers by reducing litigation costs and shortening unnecessary delays rationalizing the permanent disability schedule shortening the medical-legal process addressing the lien epidemic and executing an independent medical cost review system.

• Eliminating the expensive workplace mandates such as 2011 bills increased the workers’ compensation expenses; and a 2010 scheme diminished the cost-saving workers’ compensation reforms.

• Controlling the workers’ compensation costs by supporting 2011 proposals to lower medical treatment and frictional costs in the workers’ compensation system systematizing the process and establishing a fee schedule for vocational professionals.

• Stoppage of a bill for increasing the workers’ compensation costs in 2009.

• Protection of workers’ compensation cost savings in 2007 and 2008 by discontinuing the rollback of reforms which were causing doubling of permanent disability expenses.

• Making it obligatory for the employers to provide an injured employee with a job settlement voucher even before knowing the amount of compensatory benefit due.

• Provided a resolution to the workers’ compensation temporary disability issues.

• Protection of workers’ compensation reforms in the court of law.

• Protection of workers’ compensation reforms in 2006 by using a veto right in legislation rolling back the reforms.

• Safeguarding of reforms that have resulted in a consistent decline in workers’ compensation insurance premiums.

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