Previous Posts have shown that California politicians, insurers, contractors, and employers conspired to slash benefits to the seriously injured worker. This legislation cutting benefits was ramrodded through under the lies of higher costs driving businesses and jobs away from California, worker fraud, and reduced profits. Let us test those theories.
“WHO BENEFITS?” We know it wasn’t the injured worker because he gets less, much less. Who did benefit from the denial of benefits to legitimately injured workers in California? (“Blood Money”)
The Politician: Politicians saw an issue that would bring in campaign contributions and votes. There aren’t enough construction workers who vote and would contribute to campaigns so you are expendable. Insurers, developers, and contractors will contribute generously to a politician that fattens their bottom line. The voting public has been inflamed by misleading and lying propaganda that the WC system is broke and abused by the workers and lawyers. POLITICIANS BENEFIT FROM REDUCED BENEFITS.
The WC Insurer: Insurers profits have dramatically increased as benefits to workers have dropped. WC Insurers in California are making record profits while injured worker payments are the lowest in the nation. In the recent past insurers profits excceded workers’ benefits. California insurers are more than triple the profits earned in other states. California’s Workers’ Compensation Fund reported net income for 2009 increased ninety one percent (91%). These profits will increase signicicantly in the future. CALIFORNIA’S WORK COMP INSURERS BENEFIT FROM REDUCED BENEFITS TO WORKERS.
The Contractors/Employers: “IT’S THE EMPLOYEE FRAUD, STUPID!” Blaming workers’ fraud and illegal aliens taking jobs makes easy headlines and the accused are silenced. However, the real fraud in Workers’ Compensation is Contractor/Employers’ underreporting payrolls, misreporting their employees, and hiring illegal aliens. A major UC Berkeley study found there was a massive problem of employer fraud in Work Comp Insurance. The employer cheats, pays lower premiums, and the loss is passed on to the consumer via the insurer. The illegal alien is employed by the law breaking employer. Reducing worker benefits, hiring illegals, misreporting fraud and blaming the worker makes good business sense. THE CONTRACTOR/EMPLOYER BENEFITS FROM REDUCED BENEFITS TO WORKERS.
The Economy and Consumer: The economy is in the tank because of various business fraud practices and a global depression. The California economic crisis was not caused by workers’ fraud or too generous benefits. Contractors and employers laid off the loyal, hard working employees when their profit margins were shrinking. THE ECONOMY AND CONSUMERS DID NOT BENEFIT BY THE REDUCTION IN WORKER BENEFITS.
The big winners for the “blood money” savings in reducing workers’ compensation benefits are politicians, insurers, and contractor/employers. The big losers for reduction in workers’ benefits was and continues to be the injured worker, consumers, and economy.
The only way an injured worker can receive justice in California is to file a civil lawsuit. And don’t feel sorry for the insurers who might have to pay out some of the billions in premiums they collected. Part of those premium dollars were taken from your benefits.