PRESENTERS / ORGANIZATIONS
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2 PRESENTERS / ORGANIZATIONS Jerry Azevedo, Workers Compensation Action Network Jeremy Merz, California Chamber of Commerce Jason Schmelzer, California Coalition on Workers Compensation
3 California Coalition on Workers Compensation Statewide association of employers committed to maintaining a workers compensation system that provides quality benefits at a reasonable cost Advocacy Leadership Voice of California employers in legislative and regulatory venues At the forefront of lobbying efforts on key workers compensation legislation and regulations in Sacramento Coordinates lobbying efforts for employer community Educational Outreach Annual educational conference on WC trends, strategies, and policy Conduct annual Legislative Education Day Free educational webinars New redesigned website
4 CalChamber California s largest pro-business advocacy group 120 year history 75% of 13,000 members have less than 100 employees Advocacy and Political Action Track more than 3,000 bills annually Identify and oppose job killers and support job creator bills Support pro-jobs candidates Education and Compliance Resources HR California Labor Law Helpline
5 Workers Compensation Action Network Broad-based, statewide coalition of employers and insurers dedicated to defending and advancing reform of the California workers compensation system Includes major employer trade association in California Insured, private and public self-insured employers Educate lawmakers, the business community, and members of the media on workers compensation issues Track system performance and trends Provide media commentary Engage in online and social media ( Conduct annual Legislative Education Day Mobilize grassroots network to support/oppose legislative proposals
6 REVIEW/PREVIEW TOPICS Review: California Political Landscape Review: California System Performance Review: 2014 Workers Comp Legislation Preview: 2015 Legislative Session
7 CALIFORNIA POLITICAL REVIEW LANDSCAPE ASSESSMENT 2014 ELECTION CYCLE SACRAMENTO POWER STRUCTURE
8 LANDSCAPE ASSESSMENT Statewide Offices Governor Brown in firm control All controlled by Democrats State Legislature Changes in term limits Changes in budget politics Changes in leadership / committee chairmanships State Assembly 52 Democrats / 28 Republicans / 26 New State Senate 26 Democrats / 14 Republicans / 3 Vacancies Soon / 10 New
9 GOVERNOR JERRY BROWN Governor Brown The adult in the room Immovable object / Irresistible Force Impressive record in 3 rd term WC reform on that list War chest / Nothing left to lose? Jockeying for 2018 Harris, Newsom, Villariagosa, Clooney
10 STATEWIDE ELECTED OFFICIALS
11 LANDSCAPE ASSESSMENT Legislative Structure and Term Limits Bicameral Legislature Located in Sacramento State Assembly 80 members 2-year terms State Senate 40 members 4 year terms Term Limits Proposition 140 (1990 passed 52-48%) If elected prior to Assembly Terms / 2 Senate Term Total of 14 years Proposition 28 (2012 passed 61-39%) If elected 2012 and after No restriction on where time is spent Total of 12 years
12 LEGISLATIVE LEADERSHIP Assembly Speaker Toni Atkins San Diego Short term leader Minority Leader Kristen Olsen Modesto Terms out 2016 Senate President Pro Tem Kevin de Leon Los Angeles Authored SB 863 Minority Leader Bob Huff Fullerton Terms out 2016
13 KEY DECISION-MAKERS Governor Brown Senate Pro Tem Kevin de Leon Assembly Speaker Toni Atkins Labor Secretary David Lanier? Assemblyman Tom Daly, Chair Insurance Committee DIR Director Christine Baker Gideon Baum, Senate Labor & Industrial Relations Committee Mark Rakich, Assembly Insurance Committee Acting DWC Director Destie Overpeck
14 2014 ELECTION CYCLE Legislative Races ASSEMBLY AD 8 Cooley v. Haaland AD 16 Sbranti v. Baker AD 21 Gray v. Mobley AD 32 Salas v. Rios AD 36 Fox v. Lackey AD 39 Bocanegra v. Lopez AD 65 Quirk-Silva v. Kim AD 66 Muratsuchi v. Hadley SENATE SD 6 Pan v. Dickenson SD 14 Vidak v. Chavez SD 34 Solorio v. Nguyen
15 2014 ELECTION CYCLE Impact of Voter Turnout 2014 General Voting Not Voting
16 CALIFORNIA SYSTEM REVIEW CALIFORNIA COMPETITIVENESS WC SYSTEM PERFORMANCE SB 863 IMPLEMENTATION
17 NATIONAL COMPARISON
18 HISTORICAL COMPARISON
19 Source: Workers Compensation Insurance Rating Bureau HIGH FREQUENCY
20 INCREASING CLAIM FREQUENCY California v. Other States Source: Workers Compensation Insurance Rating Bureau
21 CA FREQUENCY BY REGION Los Angeles driving trends Source: Workers Compensation Insurance Rating Bureau
22 Source: Workers Compensation Insurance Rating Bureau MORE PD CLAIMS
23 MORE CUMULATIVE TRAUMA CLAIMS Source: Workers Compensation Insurance Rating Bureau
24 HIGH MEDICAL COSTS Source: Workers Compensation Insurance Rating Bureau
25 COSTLY TO ADMINISTER Source: California Commission on Health and Safety and Workers Compensation (CHSWC)
26 SB 863 PD Benefit Increase ($1.3 billion) Higher benefit costs offset by reforms Addressing 2 out of 3 key cost drivers in CA Stabilize the rate of cost growth Projected net savings of $200 million Of those provisions that could be scored Offsetting reforms dependent on regulatory implementation
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29 AVERAGE INSURANCE RATES Insurance Commissioner Approved Additional 6.6% increase in PPR for 1/1/ %
30 WORKERS COMP BILLS AND REGS 2014 REVIEW 2015 PREVIEW
31 2014 LEGISLATIVE REVIEW AB 1035 (John A. Perez) Peace Officer Death Benefits Extended the statute of limitations for some public safety officer death claims Signed by Governor Brown AB 1746 (Alejo) Expedited Hearings Provides calendar priority for injured workers pursuing benefits from the UEBTF Signed by Governor Brown AB 2052 (Gonzalez) Peace Officer Presumptions Expands public safety presumption eligibility to tens of thousands of new peace officers Vetoed by Governor Brown
32 2014 LEGISLATIVE REVIEW AB 2378 (Perea) TD Cap / 4850 Time Overturns current case law and puts 4850 outside of the 104 week cap on TD Vetoed by Governor Brown AB 2604 (Brown) Penalties Created expensive subjective new penalties for delays / denials of medical treatment Killed in the Assembly Insurance Committee AB 2616 (Skinner) Hospital Worker Presumptions Created new MRSA presumption for some hospital workers Vetoed by Governor Brown
33 2014 LEGISLATIVE REVIEW SB 626 (Beall) Reform Provision Repeal Repealed several provisions from SB 863 Psyche / Sex / Sleep add-ons Confidentiality of UR / IMR Doctors WCAB jurisdiction over medical decisions Chiropractor as PTP after cap Killed in the Senate Labor and IR Committee SB 1234 (Block) 4850 Time Eligibility Expanded eligibility for 4850 time to tens of thousands of new peace officers Bill died in the legislature
34 2015 PREVIEW Workers Comp Final SB 863 Regulations Pharmacy Formulary Medical Control: UR / IMR / MTUS / MPN Cumulative Trauma New Claims Administration Penalties Presumptions
35 POLITICAL TAKEAWAYS Governor Brown Will continue to promote general stability State Legislature Strong Democrat majority will continue Strong support for organized labor and injured worker advocates Most WC bills will survive the process Moderate block in Assembly will sometimes engage CA Employers Need to continue education and advocacy efforts with policymakers CAAA / Labor / Medical Interests Will continue to push their priorities aggressively in Sacramento
36 WHAT YOU CAN DO Stay INFORMED CCWC Conference Chamber ALERT WCAN Newsletter Stay ENGAGED WC Education Day WCAN and Chamber Grassroots Social Media Join the effort:
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