Workers' Comp Gains Haven't Eased the Pain of Tough Cases
By Marc Lifsher, Times Staff Writer
October 17, 2006


SACRAMENTO — Two years after California overhauled its workers' compensation program, costs paid by employers have been sliced in half and profits for insurers have soared.

But employees injured on the job say they are paying a heavy price.

The sweeping changes — pushed by Gov. Arnold Schwarzenegger and passed by the Legislature in 2004 — were intended to rein in a program that was described as rife with fraud and had become the most expensive in the nation, discouraging some businesses from moving to or staying in the state.

Even as the number of claims has plummeted — by 28% in the last two years — appeals of claim denials are up. Requests for hearings rose 7.6% to 73,513 in the second quarter of this year, compared with the fourth quarter of 2003, according to state statistics.

Medical care and disability payments by insurers to injured workers fell an estimated 37% from 2003 to 2005.

Physicians, labor union officials, advocates for injured workers and even some workers' comp officials are wondering whether the changes went too far.

(Remainder of story is at the link below)
http://www.latimes.com/business/la-f...home-headlines