Rolling back workers' comp reform would be wrong move.

State Sen. Richard Alarcon convened a special hearing March 22 on aspects of California's workers' compensation programs, that, while billed as "informational only," has the potential to be the first act in a year-long drama about either protecting or rolling back recent cost-saving reforms in the workers' compensation system.

In my opinion, the rollback plan by the Los Angeles Democrat would have disastrous consequences for businesses, local governments and for California's taxpayers.

When legislators came together in 2004 to reform California's dysfunctional workers' compensation system, they did more than throw a lifeline to thousands of businesses struggling with highest-in-the-nation workers' compensation costs. The reforms also brought financial relief to counties, cities and other public agencies throughout California which, like businesses, were grappling with skyrocketing cost increases. The extra challenge for public agencies was reconciling these increased costs with the need to provide other critical services, such as public safety, health services and maintenance of roads, buildings and parks.

In less than two years, the reforms contained in Senate Bill 899 by Sen. Charles Poochigian, R-Fresno, have delivered on their promise to local government. For example, the County of Los Angeles had previously set aside $414 million to cover anticipated workers' compensation costs for our 2004-2005 budget. Thanks to the SB 899 reforms, coupled with a new Consolidated Risk Management Program established by the county in 2001, we have been able to reduce these anticipated costs by 34 percent.

That translates into a savings to taxpayers of $141 million, money that will be invested back into our community in the form of new or expanded services, rather than being dedicated to the ballooning costs of workers' compensation.

The long-term impacts are even more impressive. At the height of the workers' compensation crisis, we projected that Los Angeles County would be paying more than $1.1 billion by the year 2010. Today, we are projecting our costs in 2010 to be $400 million--a $700 million savings to local taxpayers.

With similar results being replicated by counties, cities, school districts and other public agencies in the state, lawmakers should pat themselves on the back for a job well done. It would be a mistake for legislators to roll back the reforms passed in 2004.

First, besides the fact that the reforms are yielding enormous benefits for local taxpayers, the system was redesigned so that it works better for both employers and injured workers. The SB 899 reforms were crafted so that injured workers are, for the first time, treated according to medical guidelines. These guidelines are helping to ensure that workers get the most appropriate medical care, not simply the most expensive care, which was too common under the old system.

Second, the new system also establishes incentives for getting injured workers back on the job, which means an improved economic outlook for workers who were treated under the old system as though they had no chance of ever being able to return to their job after sustaining a workplace injury.

Lastly, the system is still in the process of about by SB 899. Although we are approaching the two-year anniversary of the reform's passage, the workers' compensation system hardly turns on a dime. Claims managers and medical professionals are still on a learning curve. The tree impact of the reforms is just now being reflected in total system costs and savings.

While California might never have a perfect workers' compensation system, SB 899 has stopped the skyrocketing costs and put our system back on the mend. We need continued vigilance to prevent fraud and abuse and make sure the system is serving both businesses and the people who need it the most: the injured workers for whom workers' compensation was designed. We need ongoing studies to determine exactly how the system is changing in the post-reform environment.

Now is not the time, however, to go backward. The reforms created two years ago are far too important for taxpayers, businesses and injured workers to be abandoned now.

Don Knabe is Los Angeles County's Fourth District supervisor.