Media Advisory: Most of Workers’ Comp Premium Dollar Going to Insurers, Not to Injured Workers’ Medical Care or Disability Compensation
 
SACRAMENTO, CA – Todd McFarren, the president of the California Applicants' Attorneys Association (CAAA), whose members represent Californians injured on the job, said today that the workers’ compensation insurance companies’ proposed rate increase would go to "denying injured workers the medical care they need."
 
McFarren responded to an insurance industry research group's proposed rate hike by noting that, "Since 1994, when SB 899 was enacted, the largest portion of employers' premiums has gone to insurers' profits, not to injured workers' care or compensation for their permanent disabilities. And much of this proposed increase, supposedly due to higher medical costs, is actually going to pay for insurers' expenses to review, and usually deny, requests for medical care, rather than providing the care injured workers need so that they can return to work."
 
McFarren pointed out that, "Insurers have pocketed record profits since the Schwarzenegger reforms took effect 5 years ago, and injured workers' compensation has fallen to among the lowest in the nation. The insurance carriers' rate hikes would not go to injured workers, but most of it would be profits or the cost of denying medical care and permanent disability compensation."
 
The attached chart shows where California employers' workers’ compensation premium dollars have gone since the Schwarzenegger changes took effect.
 
 
Posted 03-27-2009 9:56 PM by caaaAdmin 

 


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