The workers’ compensation system in California is a very complex process. While it tries to take into account every possible contingency in such a way as to balance workers’ rights and need for quick access to benefits with employers’ need for a way to predict workers’ compensation expenses, from time to time the system will need a major overhaul to keep it up-to-date with changing times and economic conditions.
To this end, California state legislators and Governor Jerry Brown passed a piece of legislation, which provided for somewhat sweeping changes to the state’s workers’ compensation act about three years ago. Many saw these changes as favoring employers and insurance companies, causing a disadvantage to providers of medical care for injured workers and rehabilitation providers, and, in turn, harming many disabled workers, even though it was designed to provide more cash benefits to workers.
Since the bill was enacted, there have been reports of a five percent drop in medical claims associated with workers’ compensation petitions. This has undoubtedly upset medical providers around the state, and they have pushed for new changes to the state workers’ compensation act. A newly proposed piece of legislation entitled Senate Bill 563 aims to address their concerns. According to a recent article in the Sacramento Bee, State Senator Richard Pan, a physician himself, wishes to take away some of the teeth from the utilization review required to approve any medical treatments as absolutely necessary prior to awarding disability benefits to pay for those medical treatments. Continue Reading ›