tag:blogger.com,1999:blog-8489363879633129568.post9174499164008798543..comments2023-11-13T11:54:56.769-08:00Comments on DePaolo's World: CA Reform: Are You On The Guest List?Anonymoushttp://www.blogger.com/profile/02446191842560064784noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8489363879633129568.post-17268551218127482272012-08-09T16:14:15.760-07:002012-08-09T16:14:15.760-07:00Bill - you miss the point! It's POLITICS. It d...Bill - you miss the point! It's POLITICS. It does not matter whether it actually works.Anonymoushttps://www.blogger.com/profile/02446191842560064784noreply@blogger.comtag:blogger.com,1999:blog-8489363879633129568.post-24840451179763522482012-08-09T15:53:11.810-07:002012-08-09T15:53:11.810-07:00David,
I just can’t see how anything of substance ...David,<br />I just can’t see how anything of substance can come out of any ‘smoke and mirrors’ action by the Legislature.<br /><br />Consider this:<br /><br />1 – Indemnity benefits, in order to be politically correct, will have to increase or, at a minimum, remain at the same level.<br /><br />2 – There’s a hope that, by some ruling of fiat – fee schedules, suppression of lien claims, choking the copy service – we can get some cost savings from the medical side.<br /><br />3 – No one has mentioned anything about the LA&E part of the equation. So, the carriers are going to continue to get their ‘bite of the apple’ regardless of what the other two pieces do.<br /><br />According to the latest WCIRB figures (requesting another rate hike for January 2013), the carriers spent 46% of every premium dollar. Medical and Indemnity also spent approximately 40%+ each (combined loss ratio was 126%).<br /><br />Do the math – it works out to 1/3rd – 1/3rd – 1/3rd (not exactly, but let’s round for argument’s sake).<br /><br />Indemnity will go up, or stay the same. LA&E is the ‘sacred cow’, so it won’t change.<br /><br />We’re left trying to choke savings out of the last 1/3rd – Medical. If we could extort a 20% savings, we’re talking about 20% of 33% - a maximum of 6% (more or less).<br /><br />Either we reduce medical benefits to the injured workers – or we get little (or no) savings from the Medical piece.<br /><br />No matter how it gets ‘dressed up’, anything the Legislation would (or could) do is just ‘lipstick on a pig’. As we say here in the South, ‘That dog won’t hunt.’billhttps://www.blogger.com/profile/16030231757371541081noreply@blogger.com