OPPORTUNITY RISES FOR MAJOR REFORM STATE LEGISLATORS NEED TO IMPROVE WORKERS' COMPENSATION SYSTEM.

Byline: KEITH RICHMAN 

TIMES are pretty tough here in California.

Employers are laying off workers, closing shifts, shutting their doors and moving production out of state. These economic pains are caused by the dot.com bust, higher energy bills, a looming state budget deficit and higher health care premiums.

Although the Legislature cannot solve all of these problems, during the next three weeks it can make substantial, cost-saving reforms in another major economic sore spot, California's workers' compensation system. Employer costs for workers' compensation insurance has skyrocketed in recent years. Some employers have seen their premiums double and triple during the past two years.

Workers' compensation was established in the early 1900s to provide medical care and disability payments for injured workers. Employers supported a system that focused on treating injured workers and returning them to the work force. Employees liked guaranteed medical treatment and receiving cash benefits during their recovery. As it was originally intended, the workers' compensation system was a ``win-win'' for employees and employers.

Today's workers' compensation system is a far cry from its original intent. The system poorly serves both employees and employers. Injured workers in California receive some of the nation's lowest benefits, while employers are paying some of the nation's highest costs. Yet, to no one's great surprise, we have some of the best-paid lawyers in the country.

Seriously injured workers clearly deserve the best care and higher compensation for their injuries. Yet to protect our economy, the cost of these much-needed benefits must be offset by improving the way health care is delivered and reducing the wasted costs of litigation and administration.

Because the workers' compensation system includes public employers, it is not just businesses that need relief. In fact, most school districts spend more per student on workers' compensation than they do on books.

Rising workers' compensation costs increase the pressure to raise taxes and cut local government services.

This year, Senate Bill 71 passed the Senate with about $4 billion in additional benefits for employees and no common-sense system reforms to help pay for them. Public employers and the business community have proposed dozens of reforms that would fight fraud and abuse, ensure prompt and fair payments, improve medical care for injured workers, increase system efficiency and, most important, reduce costly litigation. The liberal legislators who work hand in hand with the lawyers who profit from injured workers rejected almost all of them.

This week during a key committee hearing, Republicans tried to amend nearly a dozen of the most important reforms into SB 71. Despite pleas from the public employers and small businesses, these common-sense reforms were rejected without serious consideration.

Both employers and workers will benefit from significant workers' compensation reforms. Medical reporting and assessments for injured workers would be improved by raising the standard for physicians treating injured workers. By eliminating paperwork and bureaucratic inefficiencies, lengthy litigation and the costs associated with going to court may be avoided. To reduce fraudulent claims, current fines would be doubled for anyone who hires ``steerers'' or ``cappers,'' someone who entices people to obtain workers' compensation benefits fraudulently.

While California's public and private employers struggle to live within their budgets and make a profit in this uncertain economy, concerned lawmakers should do their part by reforming the workers' compensation system. This timely issue provides legislators who fancy themselves as ``pro-business'' an outstanding opportunity to demonstrate their concern for both employers and employees.

Since everyone agrees that seriously injured workers deserve the highest quality health care and better compensation, the real choice is between the struggling employers or the greedy lawyers.