Assembly Insurance Committee Conducts Hearing

By CMTA Staff

Capitol Update, Feb. 11, 2004 Share this on FacebookTweet thisEmail this to a friend

On Wednesday, February 11, 2004, compelling employer testimony highlighted the Assembly Insurance Committee hearing on workers’ compensation reform and ABx4 1 by Assemblymember Abel Maldonado (R-Santa Maria). Various stakeholders in the workers’ compensation system, specifically employers, provided personal testimony and statistical information.

Initial comments by Assemblymember Juan Vargas (D-San Diego) and Assemblymember Robert Dutton (R-Rancho Cucamonga) outlined the need to reform a system that currently doesn’t serve employers or employees.

What followed was substantial testimony of how workers’ compensation costs continue to negatively impact California’s employers.

In one particular case, Judy Nygren, Executive Director of Mount Washington Preschools and Children’s Centers in Los Angeles, saw their premiums rise from $31,000 to $131,000 in one year! She went on to explain that the $100,000 her organization had to pay in workers’ compensation premiums would have served the needs of at least 200 children that they normally provide care to.

Another even more compelling testimonial came when Skip Covell, Executive Director of the Area of San Diego (a non-profit organization serving those with disabilities), said “my work comp costs have gone from $500,000 two years ago to $3,003,000 this year. We have been forced to lay off critical staff, pass on the health insurance costs to employees and put off salary increases.”

Employers at the committee hearing said they would continue to urge their lawmakers to enact Governor Schwarzenegger’s proposal. Please contact William Hodges if you’re willing to testify at future hearings at whodges@cmta.net or at (916) 498-3324.
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