Reforming Workers’ Comp

Bill Boyarsky has fallen victim to the false notions about the state’s workers’ compensation system and what political role injured workers’ lawyers play in efforts to reform the system (“Lights, Cameras but Slow Action on Workers’ Comp,” Jan. 27).

On Feb. 15-16, Assembly Speaker Willie Brown will convene an economic summit in Los Angeles to examine the real problems in California’s economy. Because the participants will be balanced and represent a wide cross-section of business, labor, economists, academicians and other experts, we expect the summit will agree that:

* There is no real evidence that workers’ comp costs are inciting business flight from the state. There are only flawed, self-serving surveys taken by the business community itself.

* Workers’ comp premiums statewide average less than 5% of the payroll.

* Most legislative proposals last year, including the governor’s plan, did not address the real cost drivers in workers’ comp but instead focused exclusively on taking away or severely limiting benefits for injured workers--not only indemnity benefits, but vocational rehabilitation and control over choice of physicians as well.

* The real cost drivers are medical treatment and insurance expenses/profits. They account for two-thirds of every premium dollar.

* Seriously injured workers have not received any real increase in permanent disability benefits since 1983. The current level is $140/$148 per week for a finite number of weeks.

* Although the governor consistently has alleged that premiums are among the highest and benefits are among the lowest in the country, neither his proposals nor those sponsored by employer groups have contained adequate benefit increases.

* The surest way to decrease costs is to reduce the number of workplace injuries and illnesses.

The California Applicants’ Attorneys Assn. has urged in the past, and is supporting again this year, legislation to control medical costs, reform insurance industry practices and rate-setting, encourage workplace safety, and provide reasonable benefits for permanently disabled workers.

Incidentally, applicants’ attorneys’ fees account for less than three cents out of every premium dollar, are determined by a judge and average 9%-12% of the injured worker’s award.

LLOYD ROWE, President

California Applicants’ Attorneys Assn.

Sacramento