Proposed workers' compensation reform legislation introduced in the California state legislature is getting a thumbs down from insurance trade groups.
The bill, S.B. 863, crafted by labor and employers, aims to reduce costs within California's workers' compensation system by attacking cost-drivers in order to finance an increase in payments to those on the WC permanent disability rolls. It has the support of State Insurance Commissioner Dave Jones.
But officials of the American Insurance Association and the Association of California Insurance Companies say the legislation would increase benefit payments to those on permanent disability immediately while relying on cost-cutting that a new analysis says might not be realized.
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