A recent U.S. Chamber of Commerce study shows that California’s crack down on payments to injured workers has not resulted in lower premiums charged employers. Changes were made to the workers’ comp system in 2003 and 2004 reportedly because of spiraling insurance costs.
With lower payouts to injured employees it was hoped that employers’ premiums would also decline. The 2005 Chamber of Commerce study shows that states, such as Mississippi and Arkansas, offer better benefits for workers’ comp than California.
California’s benefit crackdown resulted in higher profits for the insurance companies. The Department of Insurance estimates that California remains in the top ten for workers’ comp premiums.