WASHINGTON, D.C.– The American Insurance Association (AIA) has praised Governor Jerry Brown for his veto of three bills last week, AB 584, AB 947 and AB 1155, which would have only served to further financially burden California’s workers’ compensation system. Gov. Brown vetoed all three measures which AIA had opposed and requested that the governor veto. In addition, Gov. Brown signed legislation, AB 378, into law which removes the financial incentive for physician provision of compound drugs and limits physician reimbursement for compound drugs.
“AIA is extremely pleased that Gov. Brown chose to veto three cost-increasing measures while signing a cost-saving measure into law,” said Marjorie Berte, AIA vice president of state affairs, Western region. “The governor recognized that now is not the time to increase system costs and litigation within California’s workers’ compensation system. Now is the time to create greater efficiencies to benefit workers and employers.”
Each of the bills was passed during California’s legislative session which ended on September 10. AB 584 would have required that utilization review physicians and psychologists be licensed in California. AB 947 would have permitted the extension of the 104-week temporary disability cap while AB 1155 addressed apportionment in permanent disability cases. AB 947 and 1155 would likely have led to increased litigation and system costs. The measures would have unwound a key portion of California’s 2003-2004 workers’ compensation reforms.
“AIA is pleased that California legislators and Governor Brown recognized the need for cost-saving compound drug reimbursement reform,” said Berte. “Employers, labor and insurers supported AB 378 because it takes added and unnecessary costs out of California’s workers’ compensation system.”
Source: AIA