California workers compensation insurance overhauled

California Insurance Commissioner rejects workers compensation rate hike for the third time

Governor signs workers compensation insurance legislation into law

California Governor Jerry Brown has signed into law a legislation that will increase the disability insurance benefits workers receive if they are injured on the job. The legislation aims to provide workers with benefits more fitting to the rising costs of worker’s compensation insurance premiums. These premiums have been growing in California, largely due to the growing costs of medical care associated with workplace injuries and the prevalence of fraud. The legislation was approved by the state Legislature last month, but was signed into law by Governor Brown only this week.

Legislation aims to help workers and employers manage rising costs of insurance coverageWorkers-Comp Insurance

The legislation brings what is considered to be a much needed overhaul to the state’s worker’s compensation system. The last time changes had been made to the system was back in 2004. The legislation has garnered the support of labor and business groups throughout California but saw opposition from lawyers that represent injured workers. According to these lawyers, the legislation will make it significantly more difficult for lawsuits regarding injury claims to find any traction, which could lead to injured workers losing benefits unjustly.

Officials believe workers will benefit from legislation

According to state officials, the worker’s compensation insurance legislation will save employers hundreds of millions of dollars. The legislation is also expected to mitigate the problems being created through the growing costs of worker’s compensation insurance coverage. State officials claim that the rates are growing at such a rate that they are becoming detrimental to California workers and businesses. As such, reforms to curb the costs associated with this insurance coverage have been enacted.

Benefits of legislation likely to be seen in coming years

The benefits seen through the legislation are expected to be seen over the next few years. Workers injured on the job are expected to receive more robust disability benefits that will align well with the premiums they pay for coverage. Whether the legislation will succeed in curbing the financial impact of growing worker’s compensation insurance premiums has yet to be seen.

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