June 19, 2018

ACIC Says Questions Remain if Workers’ Compensation Reforms Will Yield Savings

Sacramento, CA – The following statement is in response to the recent Assembly Insurance Committee hearing on SB 863 to consider workers’ compensation reforms and an increase in permanent disability benefits. The statement can be attributed to Mark Sektnan, president of the Association of California Insurance Companies.

“California’s workers’ compensation system has seen rising costs for the last several years, despite the major reforms enacted in 2003 and 2004. California employees have been seeking an increase to permanent disability benefits. Both issues need to be considered and addressed. The proposal before us seems to be a moving target, thus making it difficult to analyze all the ramifications. The concern remains that the expected savings will not be realized in the system in a timely manner while the benefit increases will take effect immediately. We remain concerned that the savings will not materialize putting further cost pressures on the system.”

Source: ACIC

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