Comp News - Press Releases

Video: Injured Workers, Labor, Advocates Oppose "Unprecedented" Workers Comp. Insurance Rate Increase

2009-06-13T00:02:00Z

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June 8, 2009: Injured workers and their advocates, labor, consumer and medical leaders opposed the insurance industry's unprecedented proposal to increase workers compensation premiums by 23%. At a news conference preceding a hearing to examine insurance companies' claims of increased "medical costs," the advocates said the insurance industry has misleadingly labeled the costs of denying and delaying medical care as "medical costs." The insurance industry's own data show that "cost controls" and "medical-legal" expenses doubled in recent years, while payments to physicians dropped by 40% from 2003 to 2007.

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News Release: Injured Workers, Labor, Advocates Oppose "Unprecedented" Workers Comp. Insurance Rate Increase

2009-06-09T21:26:00Z

FOR IMMEDIATE RELEASE: Monday, June 8, 2009
Contact: Steve Hopcraft 916/457-5546; Steve@hopcraft.com

Injured Workers, Labor, Advocates Oppose "Unprecedented" Workers Comp. Insurance Rate Increase: Insurers failed to Account for 50% drop in Claims; Insurance Companies Doubled Spending to Deny Medical Care

SACRAMENTO - Injured workers and their advocates, labor, consumer and medical leaders today opposed the insurance industry's unprecedented proposal to increase workers compensation premiums by 23%. At a news conference preceding a hearing to examine insurance companies' claims of increased "medical costs," the advocates said the insurance industry has misleadingly labeled the costs of denying and delaying medical care as "medical costs." The insurance industry's own data show that "cost controls" and "medical-legal" expenses doubled in recent years, while payments to physicians dropped by 40% from 2003 to 2007.

Workers compensation insurance rates have declined through 2008, and at $2.25 per $100 of payroll, are down 65% from their peak of $6.45 at year-end 2003, the lowest rate in several decades. This drop has cut insurers' premium by more than half, from $23.5 billion in 2003 to $10.4 billion in 2008. Employers are saving $14 to $15 billion per year, and insurers have recorded tens of billions in profits. "The industry is no longer earning the obscene profits it recorded in 2004 through 2006. Now, insurers want to increase their premiums, and are hiding behind claimed "medical cost increases," said Jesse Ceniceros, president of VotersInjuredatWork.org, an advocacy group of Californians injured on the job. "The industry's own numbers show the fastest-growing medical cost is not the cost of treatment for injured workers, but the costs of delaying, reducing and denying medical care."

The insurance carriers ignored the fact that workers compensation claims have dropped by 50% and that permanent disability compensation has been cut by 50% to 70%. "Because so many smaller claims are leaving the system," noted Todd McFarren, president of the California Applicants Attorneys Association (CAAA), whose members represent Californians injured at work, "only the more serious claims are left to be covered under workers' compensation. This makes it appear that medical costs are going up, when in fact it simply means that the average injury covered by workers' compensation is more severe."

"The number of workers compensation claims has been cut in half since SB 899. Those injured workers are turning to group health policies, social security, disability and other public providers - because they can"t get medical care from the insurance companies," said Ceniceros. "Taxpayers are paying the bills for on-thejob injuries that insurance carriers should cover. Insurance companies now want employers to make up for the poor economy and investment returns. These insurance companies have pocketed $26 billion in profits since 2005, and they should absorb cost increases as are workers, our families, and most businesses." Medical cost increases justify only a small increase - 3% of 4%. The public members of the Workers Compensation Insurance Rating Board (WCIRB) proposed a 6.7% increase. "Instead of raising rates, insurers should be increasing compensation to disabled workers. Disability compensation in California is at or near the bottom of he United States," said Ceniceros.

California workers" compensation insurers posted a "healthy 12.1% return" in 2007, according to figures released this month by the National Association of Insurance Commissioners. The figures show that workers" compensation insurers posted solid profits from 2004-2007, peaking at 16.4% in 2006.
The advocates noted that insurers have the ability to control costs through medical treatment guidelines, utilization review and medical provider networks. "Much of the industry's proposed increase would actually pay for insurers' expenses to review, and almost always reduce, delay or deny recommended medical care, not to pay for medical care injured workers need so they can return to work," said McFarren. "Why is so much being spent to overrule medical care recommended by the insurers" own handpicked doctors? Injured workers are required to see doctors chosen by the company, so why are they overruling these doctors? Since the majority of treatment is provided through medical networks established by employers or insurers, and virtually all fees are subject to a fee schedule, why is so much money going to cost control?"

McFarren said, "It is folly to believe insurance industry claims that the reforms are no longer reducing costs. Statutory limits on physical therapy and chiropractic treatment are still in place, medical treatment authorization requests are still judged against nationally developed treatment guidelines and are subject to utilization review, outpatient facility fees are still subject to the Medicare fee schedule, injured workers can still receive a maximum of 104 weeks of temporary disability, penalties for unreasonable delay are still minuscule, and permanent disability awards are still subject to apportionment."

Insurance industry grossly overstates the impact of recent court decisions that could increase costs, and failed to include those that will reduce costs McFarren disputed the insurance industry's claim that recent court decisions are a basis for the proposed rate increase. "There is considerable misunderstanding regarding the impact of two recent en banc decisions from the Workers" Compensation Appeals Board," McFarren said. "The two decisions will have only a minor impact on permanent disability compensation. The estimated impact of these cases accounts for only 5.7% of the proposed 23% increase. However, because the WCAB recently granted reconsideration on both cases, any attempt to quantify their eventual impact - if any - on claim costs is grossly premature. What is certain is that these cases will not and cannot reverse the unintended 50% reduction in permanent disability benefits caused by adoption of the 2005 PDRS." McFarren said, 'should these cases be upheld upon reconsideration, they will provide much needed guidance on how to apply the 2005 Schedule. That can help eliminate unnecessary disputes and actually save costs. Some workers will have the right to attempt to rebut a disproportionate, unfair, or inadequate rating. However, because permanent disability benefits comprise only about 10% of overall benefits, any eventual cost impact will be minor."

McFarren also pointed out that other recent court decisions will reduce both benefit and expense costs, and urged the Commissioner to consider these cases when he analyzes the proposed rate increase. Click here to view the accompanying charts.

Click here to download the pdf.

For more information, visit: www.denialofcare.org

News Release: Injured Workers' Advocates Oppose Rate Increase: Insurers failed to Account for 50% drop in Claims; Overstate Impact of Court Cases

2009-04-28T20:46:00Z

FOR IMMEDIATE RELEASE:
Tuesday, April 28, 2009

Contact: Steve Hopcraft 916/457-5546
Steve@hopcraft.com

Injured Workers' Advocates Oppose Rate Increase: Insurers failed to Account for 50% drop in Claims; Overstate Impact of Court Cases

SAN FRANCISCO – California Applicants' Attorneys Association (CAAA) President Todd McFarren, whose members represent Californians injured at work, today opposed the insurance industry's proposal to increase workers compensation premiums by 24%. At a hearing called by the California Insurance Commissioner, McFarren noted that insurance premium rates continued to decline through the end of 2008, dropping to $2.25 per $100 of payroll. "This is the lowest rate in several decades, and is down over 65% from its peak of $6.45 at the end of 2003," said McFarren, who also disputed the insurance industry's claim that recent court decisions are a basis for the proposed rate increase. "The insurance industry failed to account for an unprecedented drop in the number of workers compensation claims for permanent disability compensation since SB 899 took effect. The number of workers compensation claims has been cut in half since SB 899."

McFarren noted, "Insurance companies are proposing to raise rates again, claiming that the cost of medical care has skyrocketed. However, looking at the industry's own numbers shows that the fastest-growing medical cost is not the cost of treatment for injured workers, but the costs of denying and delaying medical care (such as utilization review or bill review)."

"Much of the industry's proposed increase, would actually pay for insurers' expenses to review, and usually deny, requests for medical care, not the care injured workers need so that they can return to work," said McFarren. "Much of the unprecedented decline in injured workers' claims represents workers who are fed up with the workers' compensation system and are making claims under group health policies, Social Security, and other public programs."

"Since the majority of treatment is provided through medical networks established by employers or insurers, and virtually all fees are subject to a fee schedule, why is so much money going to cost control?" McFarren asked.

McFarren wrote to Commissioner Poizner, "It is folly to believe insurance industry claims that the reforms are no longer reducing costs. Statutory limits on physical therapy and chiropractic treatment are still in place, medical treatment authorization requests are still judged against nationally developed treatment guidelines and are subject to utilization review, outpatient facility fees are still subject to the Medicare fee schedule, injured workers can still receive a maximum of 104 weeks of temporary disability, penalties for unreasonable delay are still minuscule, and permanent disability awards are still subject to apportionment."

"There is considerable misunderstanding regarding the impact of two recent en banc decisions from the Workers' Compensation Appeals Board," McFarren wrote. "The estimated impact of these cases accounts for only a mall part of the proposed increase, 5.7% out of the overall requested increase of 24.4%. However, because the WCAB recently granted reconsideration on both cases, any attempt to quantify their eventual impact – if any – on claim costs is grossly premature. What is certain is that these cases will not and cannot reverse the unintended 50% reduction in permanent disability benefits caused by adoption of the 2005 PDRS. Should these cases be upheld upon reconsideration, some workers will have the right to attempt to rebut a disproportionate, unfair, or inadequate rating. However, because permanent disability benefits comprise only about 10% of overall benefits, any eventual cost impact will be minor. And in any case it is absurd to contend that a disabled worker should not have the right to rebut a disproportionate or unfair rating simply because a proportionate and fair rating will increase costs!"

"Because so many smaller claims are leaving the system," McFarren said, "only the more serious claims are left to be covered under workers' compensation. This makes it appear that costs are going up, when in fact it simply means that the average injury covered by workers' compensation is more severe."

For the complete text of the letter to Commissioner Poizner, visit: www.denialofcare.org

Download the pdf:(Please visit the site to view this media)

News Release: 5 Years of Schwarzenegger's Work Comp Law: Record High Insurance Company Profits, Record Low Injured Worker Care and Compensation

2009-04-22T17:46:00Z

FOR IMMEDIATE RELEASE:
Wednesday, April 21, 2009

Contact: Steve Hopcraft 916/457-5546;
Steve@hopcraft.com

5 Years of Schwarzenegger's Work Comp Law: Record High Insurance Company Profits, Record Low Injured Worker Care and Compensation

SACRAMENTO - Five years after passage of Governor Schwarzenegger's SB 899, injured workers and their advocates today said the law "has failed Californians injured on the job." VotersInjuredatWork.org and the California Applicants' Attorneys' Association (CAAA) today released their analysis of how the law has impacted hundreds of thousands of Californians injured at work. "Most of the insurance premium dollars that employers have paid have gone to insurance company profits and expenses, not to care for on-the-job injuries nor to compensate permanently disabled workers," said CAAA President Todd McFarren. "Injured workers have seen their disability compensation plummet to near the bottom of the 50 states. Medical care has been delayed and denied to the point that most physicians have withdrawn from treating injured workers. This is contrary to what was promised, and the governor has refused to remedy this horrible situation for Californians injured while working." Gov. Schwarzenegger has harmed injured workers by:

Cutting permanent disability compensation by up to 70%
Reducing access to medical treatment
Taking away injured workers' choice of doctor
Allowing insurance carriers to pocket billions from denying medical care
Cutting off temporary disability to the most severely injured workers
Reducing disability compensation to minorities, women and seniors through discriminatory "apportionment"

"Gov. Schwarzenegger's law continues to harm Californians injured on the job," said Jesse Ceniceros, president of VotersInjuredatWork.org, a non-profit political organization of injured workers and their families. "The administration has put insurance companies ahead of disabled workers. While insurance carriers racked up record profits, injured workers have set new records for bankruptcy, home foreclosure and suicide. Injured workers are still waiting for the governor's promised revision of compensation for permanent disabilities while insurance companies increase premiums."

Permanent disability compensation has been drastically cut

Multiple independent studies, including studies conducted by the California Commission on Health, Safety and Workers Compensation (CHSWC), and the Administration itself, have documented fifty to seventy percent cuts in compensation for permanent disabilities.

Insurance carrier profits skyrocketed under Schwarzenegger's law

"Since 2004, when SB 899 was enacted, the largest portion of employers' premiums has gone to insurers' profits and expenses, not to injured workers' care or compensation for their permanent disabilities. Insurance companies have pocketed $26 billion in profits - record highs, while injured workers' care and compensation have fallen to record lows," said McFarren.

Proposed rate increase is not necessary

McFarren announced that his organization is opposing the insurance industry's proposal to increase workers compensation premiums by more than 24%. The advocates noted that insurance premium rates continued to decline through the end of 2008, dropping to $2.25 per $100 of payroll. This is the lowest rate in several decades, and is down over 65% from its peak of $6.45 at the end of 2003.

"The insurance industry failed to account for an unprecedented drop in the number of workers compensation claims for permanent disability compensation since SB 899 took effect. And much of this proposed increase, supposedly due to higher medical costs, is actually going to pay for insurers' expenses to review, and usually deny, requests for medical care, rather than providing the care injured workers need so that they can return to work," said McFarren. "The insurance carriers' rate hikes would not go to injured workers, but mostly be profits or pay the skyrocketing cost of denying medical care and permanent disability compensation."

Click here to read the rest of the release.

News Release: Injured Workers: April will total 5 years of horror for permanently disabled

2009-04-09T12:54:00Z

FOR IMMEDIATE RELEASE:
Wednesday, April 8, 2009

Contact: Steve Hopcraft 916/457-5546;
Steve@hopcraft.com

Injured Workers: April will total 5 years of horror for permanently disabled

Sacramento, CA - Injured workers and their advocates today said the Schwarzenegger Administration's delay in restoring compensation to permanently disabled workers has put insurance companies ahead of disabled workers. The Division of Workers Compensation announced last year that a new permanent disability ratings schedule, with a modest increase in compensation, would be delayed until July 2009.

Schwarzenegger reduced disability compensation by 50% to 70% in 2004, and compensation has been found inadequate by the Administration's own studies. The administration announced in late 2008 that it would delay restoring compensation taken from disabled workers, because insurance companies will be increasing premiums in the first half of 2009. "The administration is putting insurance companies ahead of disabled workers," said Jesse Ceniceros, president of VotersInjuredatWork.org, a nonprofit advocacy group of injured workers. "While insurance carriers racked up record profits, injured workers have set new records for bankruptcy, home foreclosure and suicide. Now, the governor wants injured workers to wait again while insurance companies increase premiums."

Not only is the administration making injured workers wait more than five years before restoring compensation that all parties acknowledge is too low, but the administration proposes to restore only a small percentage of the reduced compensation. Ceniceros said that even with the governor's proposed increase, California would still remain well below neighboring states, and comparable US states, in compensating permanently disabled workers. "The administration's proposed minor increase does not fix the harm done to injured workers. California workers permanently disabled on the job would still receive compensation that is among the lowest in the nation. The proposal does not come close to making up the reductions that the administration's own studies found," said Ceniceros. "Injured workers have suffered cuts that were never intended by the legislature. Even the administration's own studies showed a decrease in the average rating of up to 41%. To make injured workers wait until at least July 2009 to restore disability compensation is unnecessary and cruel."

Multiple independent studies, including studies conducted last year by the Division of Workers Compensation's Administrative Director, have documented 50% to 70% cuts in compensation to injured workers for permanent disabilities. The governor has vetoed three bills by Senator Don Perata that would have doubled permanent disability compensation, promising instead a correction via the regulatory process. Now the Administration intends to delay restoring disability compensation for another eight months.

"It's insulting to cut disability compensation by 50% to 70% and then give only some injured workers back a dime or so on the dollar, and make them wait five years for it," said Ceniceros. "Permanently disabled workers rely on this compensation for their survival and that of their families. This inadequate increase does not address the unfairness of the governor's permanent disability benefits schedule." For more information, visit votersinjuredatwork.org.

Click here to download the pdf.

News Release: INJURED WORKERS’ ADVOCATES: Response to WCAB Granting Reconsideration in Permanent Disability Cases

2009-04-07T05:37:00Z

Sacramento, CA - Injured workers’ advocates today responded to the Workers Compensation Appeals Board’s (WCAB) granting reconsideration of its decision allowing injured workers to challenge the administration’s permanent disability rating schedule.

“The WCAB’s recent decisions are necessary clarifications of the 2004 statutory changes. The decisions are in line with what has been done in other states that use the AMA guides, and a long tradition of California’s own case law regarding rating permanent disabilities. Many other states supplement the AMA guides, as appropriate. We hope the WCAB’s reconsideration is not a response to the intense political pressure being put on the WCAB to decide these cases based on factors other than the law and the facts,” said Todd McFarren, president of CAAA, whose members represent workers injured on the job. “CAAA will submit a friend of the court brief in this case. We believe the board’s unanimous decision was well reasoned, based on the statutes, and the basis for the decision will be strengthened through any broad review. We are confident the Board will reconfirm its original scholarly and articulate opinion.”

McFarren said the board’s recent decisions in the combined Almaraz/Guzman cases and the Ogilvie case “allow judges to fairly assess injured workers’ actual permanent disabilities and lost wages, because the decisions allow the court to look at all the factors of disability.”

Judges, however, will “still be handcuffed by the administration’s inadequate permanent disability schedule,” McFarren said. “The administration has not addressed the fundamental flaws in its disability rating schedule. We’ve been waiting more than a year for the governor to approve his own administration’s proposal to restore a small percentage of the permanent disability compensation he cut by 50% to 70%.”

California remains well below neighboring and comparable US states, in compensating permanently disabled workers. “This decision does not fix the harm done to injured workers. California workers permanently disabled on the job would still receive compensation that is among the lowest in the nation under this decision, even if the minor increase proposed by the governor is finally adopted," said McFarren.

Multiple independent studies, including studies conducted by the California Commission on Health, Safety and Workers Compensation (CHSWC), have documented fifty to seventy percent cuts in compensation for permanent disabilities.

News Release: INJURED WORKERS’ ADVOCATES: Court Decision Allowing Rebuttal of Permanent Disability Schedule Still Means California’s compensation remains among lowest in U.S.; Administration Should Implement Promised Increase

2009-02-17T22:36:00Z

FOR IMMEDIATE RELEASE:
Tuesday, February 17, 2009

Contact: Steve Hopcraft 916/457-5546,
Steve@hopcraft.com

Sacramento, CA - Injured workers’ advocates today said a recent Workers Compensation Appeals Board (WCAB) decision allowing injured workers to challenge the administration’s permanent disability rating schedule is a necessary clarification of the 2004 statutory changes, but doesn't address the critical problem that California is at the bottom of US states in compensating permanent disability insurance claims from on-the-job injuries. Todd McFarren, president of CAAA, whose members represent workers injured on the job, said the board’s recent decision in the combined Almaraz/Guzman cases “allows judges to fairly assess injured workers’ actual permanent disabilities and lost wages, because it allows the court to look at all the factors of disability.” Judges, however, will “still be handcuffed by the administration’s inadequate permanent disability schedule,” McFarren said. “The administration has not addressed the fundamental flaws in its disability rating schedule. We’ve been waiting more than a year for the governor to approve his own administration’s proposal to restore a small percentage of the permanent disability compensation he cut by 50% to 70%.”

Multiple independent studies, including studies conducted by the California Commission on Health, Welfare and Workers Compensation (CHSWC), have documented fifty to seventy per cent cuts in compensation for permanent disabilities.

The governor has vetoed three bills by Senator Don Perata that would have doubled the number of weeks injured workers receive permanent disability compensation, promising instead a correction via the regulatory process.

“Neither this court decision nor the governor’s proposed minor increase will fix the harm done to injured workers. California workers permanently disabled on the job would still receive compensation that is among the lowest in the nation. The decision and the proposal do not come close to making up the reductions that the administration’s own studies found,” said McFarren, “Injured workers have suffered 50 to 70 percent cuts that were never intended by the legislature. Even the administration’s own studies showed a decrease in the average rating of up to 41%.

To make injured workers wait until at least July, 2009, and likely much longer, is unnecessary and cruel.”

News Release: Bill Bans Insurer Bias in Disability Claims: DeSaulnier Bill Prohibits Insurers from Penalizing Ethnic Minorities, Women, Older Workers Bill Responds to Dollar Tree, Other Bias Cases

2009-02-17T20:44:00Z

FOR IMMEDIATE RELEASE:
Thursday, February 12, 2009

Contact: Steve Hopcraft 916/457-5546,
Steve@hopcraft.com

SACRAMENTO - The California Applicants Attorneys Association (CAAA) and VotersInjuredatWork.org today applauded Sen. Mark DeSaulnier’s (D – Martinez), legislation (SB 145) to ban race, gender, genetic bias in handling workers compensation disability claims. “SB 145 would ban reducing disability compensation based on factors such as age, race and gender. Currently, insurers and doctors are reducing permanent disability insurance payments based on age, race and gender. Discrimination has reduced compensation to disabled workers by millions of dollars,” said Sue Borg, Legislative Chair for CAAA, whose members represent those injured at work. “On Abraham Lincoln’s 200th birthday, it’s past time to ensure that all injured workers are treated equally by insurers in compensating permanent disabilities from work injuries.”

The measure is in part a response to the case of Taneka Talley, a Fairfield Dollar Tree employee stabbed at work by a racist customer. The insurer and employer reduced the Talley family’s compensation, claiming the racial motivation was based on a “personal” characteristic. SB 145 bans discrimination in determining disability compensation to workers injured on the job. Sen. DeSaulnier’s legislation incorporates current federal and state civil rights protections into California’s workers compensation laws. SB 145 comes in the wake of a flood of medical reports written by physicians who say they are compelled by SB 899 to apportion permanent disability to factors such as age, race, and ethnicity.

Jesse Ceniceros, president of VotersInjuredatWork.org, said, “Californians go to work each day and do their jobs, believing that if injured at work they will receive medical care and compensation. Since SB 899 was passed, that expectation no longer holds. Tens of thousands of Californians injured at work are NOT receiving fair compensation for their injuries at work. One reason is that insurers are being allowed to reduce permanent disability compensation based on race, gender, age, national origin and other discriminatory factors.”

Until SB 899, employers could not penalize a worker for a pre-existing condition if it did not impair their ability to do their job. Now, insurance companies aggressively seek to reduce benefits based on “risk factors” relating to certain demographic groups. A risk factor is something that increases one’s chance of getting a disease. Reducing compensation based on “risk factors” penalizes an individual for being part of a certain race, gender or age group, regardless of whether the individual had any symptoms or whether the “risk factor” affected the ability to do the job.

There have been several court cases challenging the reduction of benefits based on “risk factors.” “Insurers and their doctors say women, minorities or older workers are more likely to develop certain conditions,” said Borg. “Then, without any evidence these factors contributed to the work injury, or were even known or symptomatic prior to the work injury, they reduce disability compensation for people in those groups.”

Here are some examples of discrimination in workers compensation benefits:

• A San Diego African-American Costco worker who developed hypertension after exposure to toxic chemicals on the job lost half of his permanent disability compensation because the doctor concluded that African-Americans are more susceptible to hypertension. The man had no history of hypertension.
• A doctor admitted under oath that an African-American man with a heart attack would receive lower benefits than a white man with the same injury.
• Female workers, especially those over 40, are receiving less compensation for carpal tunnel injuries than men – simply because women over 40 are those most likely to develop carpal tunnel injuries.

Apportionment is a mechanism to assure that employers are not held responsible for a "pre-existing" disability of an employee injured on the job. Some types of apportionment are not discriminatory. For example, any prior compensation received can be deducted from a subsequent award should the worker suffer a further disability to the same body part.

News Release: California Applicants' Attorneys Association Welcomes Baca Bill to Study Workers’ Compensation

2009-01-28T20:51:00Z

FOR IMMEDIATE RELEASE:
Wednesday, January 28, 2009

Contact: Steve Hopcraft 916/457-5546,
Steve@hopcraft.com

The California Applicants’ Attorneys Association (CAAA), whose members represent Californians injured on the job, today welcomed legislation introduced by US Rep. Joe Baca (D – Rialto) to create a national commission to study states’ workers compensation laws.

“CAAA applauds the introduction of this bill, and looks forward to being helpful in any way we can,” said CAAA President Todd McFarren. “We welcome a national commission to study California’s workers compensation system, and those of other states, and whether California and other states are adequately serving injured workers. We stand ready to provide Congress and the commission, should it be created, with evidence of the drastic reductions in permanent disability compensation since 2004; discrimination in permanent disability awards; and inadequate access to medical treatment for injured workers.”

“We know that insurance payments for permanent disability from work injuries in California are near the bottom nationally, so we can certainly learn from other states who are doing a better job,” McFarren said.

News Release: Injured Workers Applaud Move to Create National Workers Compensation Commission

2009-01-27T20:47:00Z

FOR IMMEDIATE RELEASE:
Tuesday, January 27, 2009

Contact: Steve Hopcraft, 916/457-5546;
steve@hopcraft.com

Injured workers’ advocates urged Rep. Baca to create first US study of compensation since Nixon era

SACRAMENTO – VotersInjuredatWork.org, a nonprofit California injured workers’ advocacy group, today applauded U.S. Rep. Joe Baca’s (D – California) introduction of legislation (HR 635) to examine the state and nation’s workers compensation system and whether they are providing “adequate, prompt and equitable” compensation to injured workers. “Injured workers welcome this effort to examine the adequacy, promptness and equity of workers compensation systems,” said Jesse Ceniceros, president of VotersInjuredatWork.org. “We encouraged this legislation because we know that injured workers in California can’t live in the state where they were injured on the job. Californians injured at work are losing their cars, their homes and their good credit under the system.”

The last review of the states’ workers compensation laws was in 1972, during the Nixon Administration. The Commission found that the system of state laws was “inequitable and inadequate.” “Permanent disability compensation in California has been cut by more than half,” said Ceniceros. “Vocational rehabilitation has been taken away, temporary disability has been cut off after two years, harming the most seriously injured workers, and medical care is routinely denied and delayed by insurers overruling the recommendations of treating doctors. We welcome the move to examine the states’ workers compensation laws, and call for swift passage of HR 635.”

The measure is here: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.635.IH:
Visit VotersInjuredatWork.org at: www.viaw.org

Download the pdf: (Please visit the site to view this media)

News Release: Californians injured at work suffer from poor compensation and care

2009-01-15T20:57:00Z

FOR IMMEDIATE RELEASE:
Thursday, January 15, 2009

Contact: Steve Hopcraft 916/457-5546;
steve@hopcraft.com

From Capitol Weekly
By Todd McFarren

As we turn the calendar page to a new year, tens of thousands of Californians injured while working are facing inadequate medical care, denials of insurance payments, and compensation for permanent loss that is among the lowest in the nation.

These troubling conditions are a result of the governor’s workers compensation changes from 2004. The governor has vetoed several bills to cure these ills. He touts as a “success” his horrible attacks on injured firefighters, cops, teamsters, state employees, and teachers. Far from success, these policies hurt working Californians deeply.

Two days before Christmas, Richard Chance held a Sacramento news conference to outline the horrors he has faced since being injured at work.

Richard worked as an Operating Engineer for many years. He loved his work. A motorcyclist hit Richard at work and the insurer denied needed care. Richard is still injured but is losing his temporary insurance payments due to the 2-year cap placed into law by Governor Schwarzenegger. What are he and his family to do?

On December 11, 2006, Richard was standing next to his work truck when a motorcyclist came around the corner and hit Richard and a co-worker. Richard flew 35 feet from the impact. He suffered a broken femur that punctured his skin, a pelvic fracture, a broken tibia, a broken fibula,

and a traumatic brain injury. Richard lost 41 pints of blood. His femur didn’t heal properly and he had to have a new rod implanted. Richard also developed a blood clot in his lung. Richard suffered numerous serious injuries, including fractured leg and pelvic bones, and a traumatic brain injury. The insurance company delayed approving Richard’s medical care, resulting in Richard reaching the 24-month cap on temporary disability. Richard has not yet completed his medical treatment, and can’t return to work, but the insurance carrier is cutting off his temporary disability. The financial impacts on Richard and his family from being cut off of temporary insurance payments are extreme, and means they cannot pay their mortgage.

Another truly amazing case exemplifies how insurance companies are mistreating injured workers, because the law enables them to do so without significant penalties.

Taneka Talley was stabbed to death while working at The Dollar Tree. The killer may have targeted Taneka because of her race. The insurance company refused to pay death benefits to Taneka’s 11-year-old son because the slaying may have been racially motivated. The insurer claimed that made it “personal” and not work-related!

Taneka Talley, 26, was a single mother with one son, Larry, now 11 years old. She was working at The Dollar Tree in Fairfield trying to provide a better life for him. Taneka’s wish for her son was for him to graduate from college.

Taneka went to work early on March 29, 2006, to help open the store. Shortly after opening, Taneka, who was African-American, was stabbed in the chest by a white man she had never met. According to a court-appointed psychiatrist, the man had determined to kill the first black person he saw that day, and that person was Taneka. The insurance company, Specialty Risk Services, denied death benefits to Larry, claiming the hate crime aspect made the death “personal,” and therefore not work-related. California law requires payment of death benefits if the employee was killed on the job as a result of employment. A “personal” connection would cover an attack, such as by a husband who kills his wife on company grounds. This denial of death benefits for Taneka’s son was astounding. Why would the fact that the attack was racially-motivated be grounds to penalize Taneka’s surviving son?

Although the insurance company finally agreed to pay the compensation it owed to Taneka’s family, the delays and denials caused great hardship. Widespread bad publicity no doubt played a role in the insurance carrier finally paying up. But how many cases meet this unique test for newsworthiness?

How can our state government continue policies that penalize our working men and women, and reward insurance companies for denying and delaying legitimate care and compensation? These policies are forcing taxpayers and group health providers to pick up the care and support of injured workers, while insurance carriers pocket the difference, reporting record profits since the governor’s changes were made in 2004. It’s time for these policies to change.

Todd McFarren is the president of California Applicants’ Attorneys Association. He practices law in Watsonville, and served two terms as the city’s mayor.

For more information please visit www.denialofcare.org

News Release: New Study: Insurers Shifting Workers’ Compensation Costs Onto Taxpayers, Workers

2008-11-17T22:08:00Z

FOR IMMEDIATE RELEASE:
Monday, November 17, 2008

Contact: Steve Hopcraft 916/457-5546;
steve@hopcraft.com

New Study: Insurers Shifting Workers’ Compensation Costs Onto Taxpayers, Workers
Cuts to injured workers’ compensation increases Social Security and Disability Insurance Costs

SACRAMENTO – A new California study has found that workers’ compensation insurance carriers have shifted hundreds of millions of dollars in claim costs onto employees. The study by the Commission on Health, Safety and Workers’ Compensation (CHSWC) found that many claims paid through the State Disability insurance program (SDI) should have been covered as workers’ compensation claims. Consequently, taxpayers and employees are paying costs that insurance companies should pay. “When insurers refuse medical care and compensation to injured workers, injured workers seek the care and support they need elsewhere. Deep cuts to injured workers’ care and compensation have driven those workers to other programs such as SDI. That means that workers are picking up the tab for insurance companies’ denial of care and compensation for their own workplace injuries,” said Todd McFarren, president of the California Applicants’ Attorneys Association (CAAA), whose members represent those injured on the job. “This cost shift is particularly egregious, as SDI
is entirely funded by workers through payroll deductions. Insurance companies have banked record profits, while sticking disabled workers with the bill.”

The study by UC Berkeley faculty found that 13.1% of SDI claims should be defined as industrial, and therefore covered by workers’ compensation. Consequently, at least 9.7 % of employee SDI contributions are subsidizing occupational claims that are misclassified as industrial, representing a giveaway of about $400 million from employees to insurance companies. This means that workers are subsidizing employer workers’ comp costs.

“Temporary disability and permanent disability benefits have been unfairly and unnecessarily slashed in California,” said Jesse Ceniceros, president of VotersInjuredatWork.org. “We call upon the Governor and the Legislature to examine these disturbing findings and implement policies to stop the shifting of insurance company costs for injured workers’ claims onto those workers themselves. We also urge them to reexamine the level of compensation being
provided to injured workers.” The report is here:
Find more information at http://www.DenialofCare.org/

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News Release: Injured Workers, Advocates: Governor Again Puts Insurance Companies Ahead Of Disabled Workers

2008-10-30T21:19:00Z

FOR IMMEDIATE RELEASE:
Thursday, October 30, 2008

Contact: Steve Hopcraft 916/457-5546;
Steve@hopcraft.com

Injured Workers, Advocates: Governor Again Puts Insurance Companies Ahead Of Disabled Workers
Latest delay will total 5 years of horror for permanently disabled

Sacramento, CA - Injured workers and their advocates today said the Schwarzenegger Administration’s latest announced delay in restoring
compensation to permanently disabled workers has again put insurance companies ahead of disabled workers. The administrative director of the Division of Workers Compensation announced recently that a new permanent disability ratings schedule, with a modest increase in compensation, would be delayed until July 2009.

Schwarzenegger reduced disability compensation by 50% to 70% in 2004, and compensation has been found inadequate by the Administration’s own studies. The administration announced last week that it would again delay restoring compensation taken from disabled workers, because insurance companies will be increasing premiums in January 2009. “The administration has always put insurance companies ahead of disabled workers,” said Jesse Ceniceros, president of VotersInjuredatWork.org, a nonprofit advocacy group of injured workers. “While insurance carriers racked up record profits, injured workers have set new records for bankruptcy, home foreclosure and suicide. Now, the governor wants injured workers to wait another year while insurance companies increase premiums.”

Not only is the administration making injured workers wait a full five years before restoring compensation that all parties acknowledge is too low, but the administration intends to restore only a small percentage of the reduced compensation. The advocates said that even with the governor’s proposed increase, California would remain well below neighboring states, and comparable US states, in compensating permanently disabled workers. “This proposal does not fix the harm done to injured workers. California workers permanently disabled on the job would still receive compensation that is among the lowest in the nation. The proposal does not come close to making up the reductions that the administration’s own studies found,” said Todd McFarren, president of the California Applicants’ Attorneys Association (CAAA), whose members represent thousands of workers injured on the job each year. “Injured workers have suffered 50 to 70 percent cuts that were never intended by the legislature. Even the administration’s own studies showed a decrease in the average rating of up to 41%. To make injured workers wait until July 2009 to restore disability compensation is unnecessary and cruel.” Multiple independent studies, including studies conducted last year by the Division of Workers Compensation’s Administrative Director, have documented 50% to 70% cuts in compensation to injured workers for permanent disabilities.

The governor has vetoed three bills by Senator Don Perata that would have doubled permanent disability compensation, promising instead a correction via the regulatory process. Now the Administration intends to delay restoring disability compensation for another eight months.

“It’s insulting to cut disability compensation by 50% to 70% and then give only some injured workers back a dime or so on the dollar, and make them wait five years for it,” said Jesse Ceniceros, president of VotersInjuredatWork.org, an advocacy group of and for injured workers. “Permanently disabled workers rely on this compensation for their survival and that of their families. This inadequate increase does not address the unfairness of the governor’s permanent disability benefits schedule.”

For more information, visit denialofcare.org.

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News Release: National Study Shows Insurers Shifting Workers Compensation Costs Onto Taxpayers

2008-10-29T13:03:00Z

FOR IMMEDIATE RELEASE:
Wednesday, October 29, 2008

Contact: Steve Hopcraft 916/457-5546;
steve@hopcraft.com

National Study Shows Insurers Shifting Workers Compensation Costs Onto Taxpayers
Cuts to injured workers’ compensation increases Social Security, Disability and Welfare Costs

SACRAMENTO – A recent national study has found that California workers compensation insurance carriers have shifted millions of dollars in claim costs onto taxpayers. The study by the National Academy of Social Insurance (NASI) found that in 2006 (the last year for which complete data was available) California employers’ workers compensation costs dropped by 6.6%. This drop was caused by a sharp reduction in cash benefits paid to workers for temporary disability and permanent disability insurance payments. “The deep cuts to injured
workers’ compensation have driven those workers to public programs. California and U.S. taxpayers are picking up the tab for insurance companies’ denial of care and compensation to Californians injured on the job,” said Todd McFarren, president of the California Applicants’ Attorneys Association (CAAA), whose members represent those injured on the job. “The cuts were unwarranted and unfair, and cause great suffering amongst those injured on the job. Insurance companies have banked record profits, while sticking taxpayers with the bill.”

The study also found increasing use of Social Security benefits for work related injuries and an upward trend in Social Security benefits. The study offers an explanation by John F. Burton, Jr., chair of the panel that oversees the annual study for the National Academy of
Social Insurance, “The difference in the trends in workers’ compensation and Social Security disability insurance payments suggest that retrenchment in one program may cause injured workers to turn to the other program for benefits to replace their lost wages.”

“Temporary disability and permanent disability benefits have been unfairly and unnecessarily slashed in California,” said Jesse Ceniceros, president of VotersInjuredatWork.org. “We call upon the governor and the Legislature to examine these disturbing findings and implement policies to stop the shifting onto taxpayers of insurance company costs for injured workers’ claims. We also urge them to reexamine the level of compensation being provided to injured workers.” The report uses payment data from all open claims, including claims for injuries that occurred before enactment of SB 899.

The report is here:
http://www.nasi.org/publications2763/publications_show.htm?doc_id=702467
Find more information at http://www.DenialofCare.org/

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News Release: Injured Workers’ Death Toll Mounts: Widow Says SCIF’s “Delays And Denials Killed My Husband”

2008-10-06T12:56:00Z

FOR IMMEDIATE RELEASE:
Monday, October 6, 2008

Contact: Steve Hopcraft 916/ 457-5546;
steve@hopcraft.com

Injured Workers’ Death Toll Mounts:
Widow Says SCIF’s “Delays And Denials Killed My Husband”
While SCIF directors skimmed millions, they issued fatal denials of care

SACRAMENTO, CA – Desiree Baker, the widow of Joe Baker an injured welder
and machinist who committed suicide in despair after fighting unsuccessfully to
get the care needed to recover from his work injuries, told a news conference
outside the State Compensation Insurance Fund (SCIF) today that “SCIF’s denials
and delays killed my husband.” Ms. Baker, from Durham, near Chico, said,
“SCIF’s delays in providing care drove my husband, Joe, to shoot himself in
despair.” Ms. Baker blamed her husband’s suicide on repeated delays and denials
in accepting Joe’s injury and authorizing needed medication, “It was SCIF’s denial
of Joe’s treatment and his pain and sleep medications that eventually drove Joe to
suicide.”

Joe Baker is at least the fourth injured worker to commit suicide since Gov.
Schwarzenegger made deep cuts in care and compensation for injured workers.
“SCIF finally accepted Joe’s injury as work-related, but by then we were so deep
in a financial hole there was no climbing out,” said Ms. Baker. “I would go to the
pharmacy in tears and come home to find Joe crying.”

Joe Baker was born in Woodland, grew up in Chico and worked for 25 years as a
welder, and also learned to be a machinist. Two decades of lifting and bending
heavy steel wore out two discs in Joe’s back. Joe was in constant pain and became
deeply depressed. It was SCIF’s denial of Joe’s treatment and his pain and sleep
medications that eventually drove Joe to suicide. We had to seek care under our
personal insurance because of SCIF constantly denying medical treatment for Joe’s
injury. That insurance required 20% co-payment for Joe’s back surgery and his
medications. That burden ultimately forced us to sell the home we had just
purchased after so many years of work. Had we not sold it, we would have lost it to
foreclosure.

Desi Baker blasted the cuts in workers’ comp benefits and the failure to provide
timely treatment, “Joe was a wonderful man, husband, father and sportsman. He
was a hard worker, and helped to raise his stepdaughter and stepson. Workers
compensation insurance was to provide medical care and support. Instead, they
denied medications and treatment, driving us into financial, physical and emotional
ruin. SCIF broke Joe’s hope and drove him to suicide.”

A State Department of Insurance audit of the State Compensation Insurance Fund
(SCIF) has revealed that Joe Baker is just one of tens of thousands of Californians
injured at work who were harmed by SCIF, rather than healed. Among other
things, the audit revealed SCIF paid nearly $20 million in penalties between
January and July 2007 for repeatedly delaying and denying appropriate care and
compensation to injured workers.

“While SCIF was delaying and denying injured workers’ medical care and
disability compensation, the insurer was awash in cash from high premiums. SCIF
takes in $3.5 billion a year from California’s small businesses, public agencies and
nonprofits that often struggle to pay those premiums. They believed their workers
would receive appropriate compensation. Nearly half the employers in the state
pay State Compensation Insurance Fund to care for and compensate employees
like Joe Baker who are injured at work,” said Sue Borg, CAAA legislative chair.

Since Governor Schwarzenegger pushed his workers compensation program
through the Legislature in 2004, insurance companies have posted record profits.
Insurer profits of $6.6 billion in 2006 were greater than the benefits paid to injured
workers ($6.2 billion). Compensation for disabled California workers has sunk to
the bottom among all the states while insurer profits have skyrocketed.

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