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California Commissioner Lowers Workers Comp Benchmark
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California Workers Comp Insurer Losses and Expenses $12B for 2020
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A small San Francisco circus tried to do right by its workers. Now it may be going out of business
Ironically, if Circus Bella had just waited to reclassify its workers, it might not be in this mess.
Lily Janiak April 26, 2021Updated: April 26, 2021, 7:02 pm
Circus Bella Executive Director Abigail Munn does plank exercises at her home in San Francisco. Munn says her 13-year-old circus company is on the verge of going out of business because of a combination of threats: the pandemic, AB5 and high workers’ comp payments that because of bureaucratic rules can’t be reduced, even though the company isn’t performing. Photo: Marlena Sloss, Special to The Chronicle
Friday, April 23, 2021 |
WorkCompCentral published a blog post by workers’ compensation defense attorney Gregory Grinberg critiquing AB 1465, a bill that would expand access to medical care by creating a statewide medical provider network.
Daniel Rosenberg
Ignoring Grinberg’s ad hominem attack on Sen. Lorena Gonzalez, his argument is that MPNs lead to higher quality and reduced costs, and therefore should be maintained without free-market competition. The problem is that his points are empirically false: MPNs increase costs for employers and lead to worse medical care for their injured workers.
The California Workers’ Compensation Institute did a comprehensive study of MPNs and found that they generated a negligible 2% in savings. Those savings were more than offset by added frictional costs to the system, as a Journal of Occupational and Environmental Medicine study concluded. Worse still, a recent study by the Workers’ Compensation Insurance Rating Bureau de
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