How California Fixed Its Workers Comp Crisis Part II - Workers Comp Premium Audit - Reserve Reviews For Employers

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May 21, 2008

How California Fixed Its Workers Comp Crisis Part II

The Governor - The fix(es) to the failing Workers Comp system in California, in my opinion, began when Governor Schwarzenegger took office. He made Workers Comp reform part of his main platform in his campaign. The quickest way to fix a Workers Comp program is the buy-in of higher management of the need to fix the current situation. The buy-in is very crucial whether the organization is a governmental entity or an employer. The Governor was not going to take no for an answer.


Senate Bill 899 - This Bill brought in a Workers Comp theory of law that was already established in other states. Quite a large portion of the bill had worked in the State of Florida during Florida's Workers Comp reforms. The main part of the bill that cut the Workers Comp Cost for employers was the establishment of Medical Provider Networks. (MPN's)


MPN's - The real application of MPN's was to enable California employers to control who the employee treated with medically, and removed doctor-shopping by employees. Controlling the medical treatment by the employer is one of my Five Secrets to Controlling Workers Comp Costs. Medical control leads to the control of most of the Workers Comp claim. Please see my previous posts on the Five Keys to Cutting Workers Comp Costs.

Up Next - California Fixes its Workers Comp Crisis Part III

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