Garamendi also touched on the fact that “High premium rates, which choked businesses and threatened to drive them from this state, have decreased, although some insurers have been slow to pass on the full savings to all businesses. Costs within the system continue to decrease as well, as has the frequency with which workers’ compensation claims are filed. In the area of serious permanent disability, benefits have been cut by an average of 50% compared to the period prior to the reforms. These problems have led me to the conclusion that the most seriously injured workers with objective findings of disability may not be receiving fair compensation, and that utilization review is now being overused to delay and deny medical care.”
I can remember some of my insurance class students who owned businesses mentioning the prohibitive cost of workers compensation. Garamendi is once again making changes to another insurance segment that needs cheaper costs for businesses and workers. It is a shame Garamendi is leaving his position soon. Hopefully his replacement will be half as vigilant as Garamendi.
