Workers’ Compensation: Containing the Costs

Report #120, February 1993


California’s Workers’ Compensation System costs $11 billion annually yet fails to adequately serve injured workers. Areas of concern include delivery systems for medical care, rehabilitation services, fraud prevention, medical/legal reports and stress claims.

The report concludes that the state must take immediate steps to institute reform and reduce premiums. In addition, the report notes that of the three major issues that require reform by California’s government — education, health care and workers’ compensation — only workers’ compensation can be reformed without the infusion of billions of dollars and only it has the potential of immediately affecting the State’s economy.

The Commission presents four findings and nine recommendations to reform the present system, including reducing medical costs through managed care; making changes in the vocational rehabilitation program; and restricting stress claims.