California Governor Optimistic About Reaching Deal on Workers’ Comp

West News • March 31

“The problem with workers’ compensation in California is that 95 percent of those who are in a position to effect change and reform do not fully understand the system. We look at the “cost drivers”—medical providers, attorneys, applicant fraud, etc., and give little attention the ineffectiveness of the Workers Compensation Insurance Rating Bureau (WCIRB). In addition, the insurance companies have an ability to maintain a “low profile” when workers’ comp reform is discussed. It is insulting to read of projected workers’ comp cost decreases and then hear John Garamendi, the Insurance Commissioner ask the insurance companies to pass on those savings to California’s employers. As of this writing, it is highly unlikely that any reforms or relief will reach the California employer in this year, and possible not even in 2005. The insurance companies are using those cost savings to shore up their own companies while continuing to charge the California employer exorbitant premiums. In today’s world workers’ comp has divided the employer and employee into a “them and us” mentality. The Boynton Act of 1913 was enacted to bring the worker and the employer together for a common good, each respecting the needs of the other. It was an honorable system then, today, it is a blank check that entices fraud and deceit. It needs to be fixed … it truly needs to be torn down, and rebuilt. Let us no longer cower to the special interest groups and yes, folks that include the ACLU. Rights of the individual should not always supercede the rights of the masses.”

— Carolyn Gonzales, Newport Beach, Calif.