How Will Workers’ Compensation Reform Affect Future Claims Frequency and Costs?
On September 18, 2012 Governor Jerry Brown signed Senate Bill 863, a comprehensive workers' compensation reform package that will result in significant changes. It is estimated to increase benefits to injured workers by more than $700 million while reducing frictional costs in the system by estimates as high as $1.2 billion. Studies reflect an overall savings of $770 million in the first year and $335 million in the second year. The overall savings continue to be debated and will ultimately depend on the effectiveness of the new regulations.