Governor Schwarzenegger Applauds Decision to Reject Workers’ Compensation Rate Increase

SACRAMENTO, Calif. /California Newswire/ — Governor Arnold Schwarzenegger yesterday applauded Insurance Commissioner Steve Poizner’s decision to reject the Workers’ Compensation Insurance Rating Bureau’s request for a pure premium rate increase that would have had an overwhelmingly negative impact on businesses, employees and California’s economy.

“Since taking office, I’ve fought to reduce workers’ compensation insurance rates so that businesses can thrive and create jobs in California,” said Governor Schwarzenegger.

“Our bipartisan workers’ compensation reforms have been incredibly successful in rooting out fraud and waste in the system, making sure injured workers receive quality care and maintaining a competitive market for California businesses. As I told the Insurance Commissioner in March, now is not the time to impose additional costs on employers especially given the current economic climate and I applaud him for making the right decision today.”

Governor Schwarzenegger sent a letter to Insurance Commissioner Poizner on March 27, 2009 urging him to reject the Workers’ Compensation Insurance Rating Bureau’s request for a pure premium rate increase.

The Governor has a strong record of working to reform California’s workers’ compensation system:

• In 2004, Governor Schwarzenegger signed historic workers’ compensation reform legislation that has saved employers $55 billion so far and reduced rates by nearly 65 percent.
• In 2006, Governor Schwarzenegger vetoed legislation that would have undermined the bipartisan workers’ compensation reforms passed by the legislature in 2004.