Commentary: Comp Reform Lacks Controls

Saturday, April 22, 2006 | 1

By Mark Hayes

The statements from Governor Schwarzenegger's Labor Agency Secretary, Ms. Victoria Bradshaw, on workers' compensation issues typify the story of blind mice describing different parts of an elephant. She sees the drop in costs and the resulting positive impact on business and the economy and cites many facts that support these assertions.

However, Ms. Bradshaw makes one critical point that is not supported by any evidence whatsoever: That injured workers are receiving "punctual treatment". Based on what we know from physicians and injured workers, exactly the opposite is true! The California Medical Association, who apparently supported SB 899, clearly reports the frustrations of physicians who are unable to get treatment approved and if they are successful, it takes weeks or months to resolve while injured workers languish. A survey from this prestigious organization should not be dismissed outright unless they have credible evidence that it is wrong. We don't believe that they do.

The problems with delays caused by utilization review and lack of appropriate treatment guidelines are rampant. The administration has waited over two years to come up with any structure to penalize insurance companies for endangering the health of injured workers, and is long past the 12/1/04 deadline to come up with appropriate treatment guidelines. On a more personal level, they should imagine how it would be if they couldn't even get a prescription or simple diagnostic procedure approved for two weeks - and that's if it goes according to the law! It can take many months if treatment disputes have to go to a QME.

Given these problems, it's no wonder that costs are down. It would go down even farther if they were just up front about it and decided to eliminate medical treatment altogether.

The viewpoint that the workers' compensation reform is good for the economy also fails to take into consideration the economic impact on the lives of workers, many of whom go bankrupt or become so indebted that they lose their homes, cars and never recover financially. They have yet to measure the economic impact on State Disability Benefits, Medi-Cal, SSDI or other social programs that take up the slack while insurance companies earn obscene profits. Injured workers are treated as so much garbage in this system. It's shameful.

VotersInjuredatWork.org wants businesses to thrive. But the built-in delays in the California Workers' Compensation system, from medical denials to the months and years it takes to finalize cases, prevents injured workers from what should be the mutual goal of employers and employees: quick recovery and return to work.

It's time that they took a look at the whole beast, not just what they want to see.

Mark Hayes is President of VotersInjuredatWork.org.

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