While pleased with the Legislature's action, Jeanne Cain, the Washington, D.C.-based American Insurance Association's vice president for the Western region, said that a conference committee is "not a panacea," and that "we must hold policymakers' feet to the fire" to ensure the passage of meaningful reform. "A band-aid approach will not help," Ms. Cain stressed.

Reforms being considered include expanding and closing gaps in the workers' comp medical fee schedules, adopting an independent medical review system, changing the permanent disability rating process, and curbing over-utilization of chiropractors.

"In my 30 years covering the California Legislature, I've never seen a conference committee to which so many bills [20] were assigned," said Alister McAlister, counsel for the Sacramento-based Association of California Insurance Companies.

Mr. McAlister noted that the Republicans in the Legislature support strong workers' comp reforms. He added that the Democrats "know they have a tiger by the tail" and must pass some reforms, but are having difficulty in accepting changes in the determination of permanent disability ratings and certain other items, including reforms that organized labor is having a hard time accepting.

"They [Republicans and Democrats] may get together on medical cost control and a moratorium on benefit increases," Mr. McAlister predicted.