The economy and high unemployment rates made 2010 a challenging year for the workers’ compensation industry. While workplace injuries and illnesses were down, claim costs (especially medical benefits) were up. A variety of issues continue to impact the workers’ compensation industry. However, reform was not high on the list this year. Only a handful of bills were successful in reaching the Governor’s desk.
A brief recap of some of the important industry-related events in 2010:
Legislative Bills Approved in 2010
- AB 933 – Physicians who perform utilization review must be licensed in California
- AB 1696 – Continues payment of death benefits for children of certain public safety workers up to 19 years of age while still in high school
- AB 2253 – Extends the current cancer presumption for certain public safety workers up to
10 years
Industry Newsworthy Events
- Continued implementation of the Division of Workers’ Compensation (DWC) 12-Point Plan
- Ongoing dispute over Governor Schwarzenegger’s furlough program that includes state employees working for the DWC
- In an effort to reduce the backlog of cases at the WCAB, the DWC expanded the use of its Electronic Adjudication Management System (EAMS)
- Los Angeles WCAB held “Lien Fiestas” in an effort to reduce the backlog of medical liens
- Debate over failure to amend the Permanent Disability Rating Schedule as required by 1/1/10
- New Posting Notices went into effect 10/8/10
(https://www.athensadmin.com/athensnews/news/new-dwc-regulations/) - California Supreme Court declined to review the Almaraz/Guzman II decision. The WCIRB estimates this will increase claim costs by 5.8%
- New Democratic governor elected – Jerry Brown
Benefit Rate Changes for 2011
- Temporary Disability Weekly Rate – No change due to a decline in the State Average Weekly Wage (SAWW) of .5%. The maximum TD rate will remain at $986.69 per week
- Cost of Living Adjustments (COLA) – No change
- Medical Mileage Reimbursement Rate – Increases $.50 per mile. New rate will be $.51 per mile
- Pure Premium Rates – No change
What’s Ahead for 2011
- Medicare Reporting begins 1/1/11
- Watch out for a new round of reform legislation that may drive up costs
- Expect changes and new dynamics in Sacramento with the arrival of the new governor