California’s State Compensation Insurance Fund hailed cost saving measures contained in the Legislature’s workers’ compensation reform package as a significant step toward decreasing system costs. This legislation will bring relief for employers who can again invest in their workforce and help jumpstart California’s economy.
With input from major stakeholders, a Legislative committee crafted a series of reforms to control and decrease costs in California’s workers’ compensation insurance system that protects approximately 13 million workers and more than half a million businesses.
“State Fund congratulates the Joint Conference Committee and Legislature for their work,” said State Fund president Dianne C. Oki. “No one gets everything they want in any piece of legislation, but we anticipate that these measures will result in system savings and a return to rate stabilization. Although the legislation isn’t a panacea, it addresses a number of the system’s cost drivers and brings the first true systemic reform of the system in a decade. We will continue to work with the Legislature to enact further reforms to bring rate relief to employers and make the delivery of workers’ compensation as effective and efficient as possible.”
“Actuaries and regulatory agencies are now working to complete their analyses of the legislation. Cost savings realized from this reform package will be taken into consideration in any rate level decision.” said executive vice president James F. Neary.
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