State Audit: 2003 Work Comp Reforms Reduce Costs

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, Jan. 30, 2004 Share this on FacebookTweet thisEmail this to a friend

The California Bureau of State Audits reported this week that the reforms accomplished in legislation last year could provide a significant reduction in some costs for on-the-job injuries.

The audit cited cost reductions of up to 58 percent for treating injuries at outpatient surgery centers. Prescription drug costs could reportedly drop by up to 25 percent.

While the audit was described as the first independent evaluation since the new reforms became effective January 1, it did not provide a complete evaluation on total savings for the $29 billion system, nor did it provide much clarity on how these savings would translate into reductions in workers' compensation insurance premiums. Current premiums in the state are over twice the national average.
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