Editorial from The Orange County Register So Opines.
As reported in an August 24, 2010 editorial printed in The Orange County Register’s Opinion section, there is a pending proposal to hike workers’ compensation premiums for businesses up to 29.6% for the “pure premium” rate (the rate businesses pay their insurers for coverage). If approved, it would reflect costs increases between January 1, 2009 and January 1, 2011.
The editorial goes on to analyze why the premiums may need to go up.
Earlier, in 2004, workers’ compensation reforms were passed in California to curtail rising costs. Central to the reforms was adoption of American Medical Association (AMA) guidelines used by other states to judge the severity of an injury. Although higher medical costs and the economy (laid off people file more claims as they leave) were contributing factors, higher legal costs also are contributing to the proposed surge in rates. Jerry Azevedo reportedly told The Register that two recent cases—Alvaraz-Guzman (Alvaraz v. Environmental Recovery Services and Guzman v. Milpitas Unified School District) and Ogilvie (Ogilvie v. San Francisco)—led to higher legal expenses, because they allowed workers’ compensation attorneys to surmount AMA guidelines. Although the costs data is not broken down, The Register roughly estimates that increased legal fees well could account for nearly half of the increase in costs.
Workers compensation:
“Union Hospital - Lewis Palmer - 14 years - 455 Peckham St. - Rope hauler in Estes Mill, making mop rope. Began April 25th. Hand cut by rope May 18th. Laid up one month. Wages $4.60 - compensation $4. Goes on Sunday hikes with his crowd. Location: Fall River, Massachusetts.” Lewis Wickes Hines, photographer. June 22, 1916. Library of Congress.
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