Garamendi commented on the cuts:
Since July 2003, I have recommended rate decreases to reduce costs within the system by a cumulative -55.1%. Today’s latest recommendation, which is higher than the -6.3% recommended by the Workers’ Compensation Insurance Rating Bureau (WCIRB), will bring the cumulative total reduction in the cost of claims within the system to -59.4%. These welcome decreases over the years have resulted from a continuing drop in the frequency of workers’ compensation claims, a decreasing amount of total permanent disability payments, and record low combined loss ratios for the industry.
It is an achievement of national significance, as no other state has recorded such success in reforming a broken workers’ compensation system. However, more improvements must be made, primarily to ensure that injured workers receive the care to which they are entitled. I, and many others, have heard far too many reports of suffering by injured workers who don’t receive proper compensation, or who experience unnecessary delays in receiving the medical care they need.
These rate cuts are sorely needed as is the repair of a much maligned workers comp system in California.
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