Insurers Profiting at California Workers' Expense

Summary

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On Feb. 15, 2004, I wrote a guest column indicating the need for regulation of workers' compensation insurance to be tied to any reform because insurance companies are incapable of regulating themselves. On April 19, 2004, reform was enacted without rate regulation, and this is the aftermath.

In 2004, workers' compensation carriers took in more than $24 billion of premiums from employers and paid out only about $8 billion claims to injured workers. Profits will continue to increase as employers pay artificially inflated premiums and insurance companies use the governor's reform tools to pay out less and less in claims and benefits to injured workers. These tools include the use of Medical Provider Networks (MPN), ACOEM guidelines, utilization review, the cut in temporary disability from five years to two years, apportionment, and a new permanent disability schedule.

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Extract

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Insurers Profiting at California Workers' Expense

You have lost your right to choose your own doctor when you are injured at work. You must pick a doctor off an MPN list screened by the insurance company and yes, most of the doctors are the insura...

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