California’s state Assembly and Senate have passed an overhaul of the state workers compensation system, a move pushed by Governor Arnold Schwarzenegger to fulfill a campaign promise.
Estimates are that the move, which mandates that doctors from a pool hired by companies must declare whether a worker is eligible, is expected to save as much as $7 billion for companies such as Costco Wholesale Corp.
Schwarzenegger described workers compensation insurance as “a poison on our economy.” The system treats 800,000 workers annually and had $18 billion in claims last year.
Estimates are that the move, which mandates that doctors from a pool hired by companies must declare whether a worker is eligible, is expected to save as much as $7 billion for companies such as Costco Wholesale Corp.
Schwarzenegger described workers compensation insurance as “a poison on our economy.” The system treats 800,000 workers annually and had $18 billion in claims last year.
- KC's View:
- Score another one for the Governator.
