Workers’ Compensation in California

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Workers’ Compensation in California

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Overview What Workers’ Compensation is History and Process of Workers’ Compensation in California New Reforms in California

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What is Workers’ Compensation? Medical Care Temporary Disability Benefits Permanent Disability Benefits Supplemental Job Displacement Benefit Death Benefits Workers’ Compensation is a social insurance program that provides :

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The Objectives of Workers’ Compensation Provide Broad Coverage Provide Substantial Protection Provide Sufficient medical Care Reduce Job-Related Accidents Reduce Litigation

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The Origin of Workers’ Compensation The first modern workers’ compensation system is created by German Chancellor Otto von Bismarck. Established German Employers’ Liability Law in 1871 Established Workers’ Accident Insurance in 1884

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California 1884 In 1884, the Californian Commissioner of Labor Statistics recommended that California adopted some similar industrial acts, but Californian employers did not assumed liability for workers’ injuries.

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In March 25, 1911, a devastating fire at the Triangle Waist Company in New York City caused the death of 146 garment workers. This tragedy was one of the main factors to make California enact workers’ compensation act. Triangle Fire 1911

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Roseberry Act in 1911 Voluntary System: The Roseberry Act did not mandate employers to join. The provision of workers’ compensation coverage to employees was voluntary. In April 8, 1911, Californian legislature passed the State’s first workers’ compensation law, known as the Roseberry Act , a voluntary workers’ compensation plan.

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Boynton Act in 1913 Boynton Act created an independent Industrial Accident Commission to resolve workers’ compensation disputes . Workers' Compensation Insurance Safety Act of 1913, known as Boynton Act , required that employers had to provide workers' compensation benefits to their employees

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Workers’ Compensation Industrial Safety Act in 1917 The act also protected employers by limiting liability for workplace injuries, including death. The act precluded employees from filing civil suits and extends more benefit features to injured workers.

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Margolin -Bill Greene Workers' Compensation Reform Act of 1989 This act was aimed at doctors and medical providers who were identified as major cost drivers to the Workers' Compensation system. The Qualified Medical Evaluator (QME) was created and it acted as a medical dispute resolution mechanism. Industrial Medical Council was established to regulate QMEs and oversee the medical evaluation process.

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(Assembly Bill) AB 749 in 2002 The Cause: Californian workers’ compensation costs increased dramatically from 1999 to 2002. AB749 Eliminated the treating physician’s presumption of correctness. The presumption of correctness was rebuttable by medical evidence. Increased the minimum and maximum weekly payments for temporary and permanent disability benefits for workers’ families.

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(Assembly Bill) AB 227 & The objective: Standardized rates for medical care and surgery centers Established fee schedules for prescription medications Provided limitations on chiropractic and physical therapy visits (Senate Bill) SB 228 in 2002

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SB 899 in 2004 Former Governor Schwarzenegger stated that California workers’ compensation system should be fixed because of its high costs. The main objectives and impact of the bill : Medical Provider Network (MPN) Temporary Disability limited to 104 weeks Permanent Disability Presumption of Correctness of Treating Physician Vocational Rehabilitation

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SB 863 in 2012 Provided injured workers with higher benefits while reducing workers' compensation costs for employers The main objectives and impact of the bill : Permanent Disability Lien Filling Fee Introduction of Independent Bill Review (IBR) Introduction of Independent Medical Review (IMR)

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AB 2883 will be effective on January 1, 2017 AB 2883 revised exemptions from the definition of an employee to apply to an officer/director of private corporation or working members of partnerships, if he or she: Owns at least 15% of the outstanding stock of the corporation Executes a written waiver of his or her rights under penalty of perjury that the person is a qualifying officer or director.

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AB 1124 The objective: Reduced unnecessary costs within the workers’ compensation system while ensuring injured workers get the necessary level of care that would help them get back to work. required the DWC to have a prescription drug formulary in place by July 1, 2017

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Governor Brown signed SB 1160: Created initial 30 day window for certain treatment provided by Medical Provider Network (MPN) doctors without requiring Utilization Review in a broad range of circumstances. AB 1224: Required DWC to suspend providers who are convicted of crimes relating to the practice of medicine. SB 1160 and AB 1244 at the end of September, 2016

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Workers’ Compensation System in California still has a long way for improvement…….

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Reference http://www.dir.ca.gov/dwc/SB863/SB863_Overview.htm http://www.dir.ca.gov/dwc/sb863/Lien-issue-brief.pdf http://www.dir.ca.gov/timelines/Timeline-for-DWC.html https://www.dir.ca.gov/dwc/AccessMedTreatmentReport2006/I_Background.pdf http://www.dir.ca.gov/InjuredWorkerGuidebook/InjuredWorkerGuidebook.html http://insurancethoughtleadership.com/sb-863-update-is-the-california-workers-compensation-system-better-than-it/ http://pepperdine.contentdm.oclc.org/cdm/ref/collection/p15093coll2/id/55 http://www.jdsupra.com/legalnews/a-workers-compensation-double-play-29749/ http://www.csus.edu/indiv/h/heflintl/group/section-2/group-4/derek%20web%20page/object.html

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