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Non-Tech : Costco, slow but sure? -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (1135)	9/11/2003 11:32:27 AM
From: Sam Citron	Respond to of 1147

Calif. lawmakers announce plan to reform workers comp [Reuters] Wednesday September 10, 8:46 pm ET By Andrea Orr and Michael Kahn SAN FRANCISCO, Sept 10 (Reuters) - California lawmakers on Wednesday agreed on a plan to overhaul a troubled worker's compensation system aimed at saving up to $6 billion in annual costs and help save the state from losing more jobs. The total bill for workers compensation insurance in California has soared to an estimated $29 billion in 2003 from $9 billion in 1995, prompting major employers such as Costco Wholesale Corp. (NasdaqNM:COST - News) to threaten to move jobs out of state unless the system is fixed. The new measure, expected to be approved later this week by the state legislature, would focus on controlling costs by reducing fraud, capping fees to health care providers and limiting injured workers' access to certain treatments. Officials said it would also likely eliminate the need for a planned 12-percent premium increase that had been set to take effect in January -- welcome relief for businesses squeezed by soaring workers compensation insurance premiums. "I'm comfortable and confident in saying the proposed increased and the last increase in July will be rolled back and then we'll look at perhaps going beyond that as we see where these final numbers come out," said state Insurance Commissioner John Garamendi. California Gov. Gray Davis applauded the measure, which he plans to sign, and said its adoption would be critical in creating more jobs in a state that has shed an estimated 300,000 positions in manufacturing since December 2000. The issue has emerged as a hot-button topic in the Oct. 7 vote on whether to recall Davis and elect a successor as candidates debate what can be done to reduce the high jobless rate in the nation's most populous state. "Make no mistake. This is not just a tinkering, it is a major overhaul," Davis said at a press conference. "This comes just in the nick of time," Davis added. "Skyrocketing premiums over the last several years have discouraged employers. I believe employers will now take a new attitude and begin to hire again." Some Republican lawmakers and business leaders, however said the reforms did not go far enough, saying the bill did not tighten standards for determining permanent disability. They also questioned whether the package would save the some $5 billion its backers projected. "Real reform must include all of the cost drivers including reforms to the arbitrary and inconsistent permanent disability rating system and a curb on the outrageous litigation expenses in the system," said state Sen. Chuck Poochigian. The 90-year-old state system, which provides benefits to injured workers, is in trouble due to rising medical costs and liberal rules governing the treatment of injuries. Employers pay premiums to insurers who in turn cover injured workers. But few private insurers remain in the market and a quasi-public agency writes 60 percent of the policies, a situation that could leave taxpayers footing the bill if the system collapses. biz.yahoo.com