California Workers Comp Reform
What do you see for the future of the California Workers Comp Reform System?
I think the applicants’ attorneys are going to try to penetrate some of the new laws enacted with Senate Bill 899 by numerous appeals. I am not sure they will be successful. They will give quite an effort to have the courts change some of the interpretations of the laws in SB899. This could turn out negative for employers.
There will be a huge influx of new carriers, and the old Workers Comp carriers will expand their business greatly. As I said in my last posts, the barriers to market entry have been lowered extensively. The Workers Comp market in CA is one of the largest in the world. This could turn out positively for the employers, as increased competition will always lower the price and increase the service level for any type of product.
The Medical Provider Networks (MPN’s) will become even more popular as employers, carriers, and the MPN’s themselves become acquainted with the workings of and the savings with using an MPN. This will be a big positive development for CA employers.
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