Lawmakers See Possible Vote April 16 on Workers’ Compensation Plan

Gov. Arnold Schwarzenegger blamed attorneys for the “two or three sticking points” that loom over negotiations on a workers’ compensation insurance reform bill.

“Every time we get language, the trial lawyers, the applicant attorneys, come up and change it around and we have to go back,” Schwarzenegger said April 13.

The governor said he and legislative leaders are “very close to agreement” but he still worked Tuesday at gathering signatures to meet an April 16 deadline to put an alternate plan on the November ballot.

Schwarzenegger’s appearance at a Costco store again showcased a massive signature-gathering drive financed with $1.6 million from his personal political fund and millions of dollars more from insurance companies, banks, farms and other California businesses.

Yet as Schwarzenegger threatened to turn in at least 1 million signatures Friday, lawmakers also signaled hopes for a deal that the Assembly and Senate could pass by Friday and prevent a ballot measure.

Negotiators were expected to take a final plan to an Assembly-Senate committee Wednesday. Senate President Pro Tem John Burton (D-San Francisco), told senators to plan for a floor session April 16.

So far all sides are working toward a plan that would lower premiums paid by employers, cut costs of medical treatment and bring more competition among insurers. But they’re disagreeing over whether injured workers should see their own doctors or those recommended by insurance companies, and whether the state should regulate rates set by insurance companies.

“I, for one, believe we will not see the maximum reductions in premiums without rate regulations,” said Sen. Richard Alarcon (D-Van Nuys). But the governor remains opposed, Alarcon said.

Schwarzenegger and lawmakers are racing along parallel tracks to see if the Legislature delivers a reform plan the governor likes or if Schwarzenegger will take the issue that affects about 14 million workers to voters this fall. The debate has sparked demonstrations, protests and news conferences while staffers of the governor’s office and leading lawmakers continue wrangling over disputes between doctors, lawyers and insurance companies.

While Schwarzenegger said attorneys who represent injured workers, the California Applicant Attorneys Association, were causing delays, the group planned a new Capitol protest for April 14.

“Some of the stuff we understand to be in this bill is pretty horrible,” said David Schwartz, incoming president of the association, responding to Schwarzenegger’s criticism.

Schwarzenegger told mostly cheering crowds April 13 that his signature drive is designed to “pressure” lawmakers to do something or “the people will straighten out this mess.”

The 93-year-old system treats more than 800,000 injured workers yearly, while mixing the nation’s highest costs to employers with some of the lowest benefits to workers. Schwarzenegger and business groups want to substantially trim costs of treating the 2 percent of workers hurt badly enough to miss work every year. But Democrats and backers, including attorneys, also want to rein in prices charged by insurance companies for the workers’ compensation policies required of California employers. Their costs have more than doubled since 2000.

The group behind Schwarzenegger’s proposed ballot alternative, the Committee for Workers Compensation Reform and Accountability, claimed Tuesday it has 800,000 signatures and will turn them in April 16 unless the Legislature acts.

Campaign spokeswoman Beth Miller also said if signatures are turned in Friday, a recommended deadline to give counties time to verify nearly 600,000 voter signatures to qualify the measure, there is no turning back.

“Once you turn them in you’re committed,” she said.

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Topics California Legislation Workers' Compensation Talent