Cost Savings in California Workers’ Comp Reform May Fall Short

California’s sweeping workers’ compensation reform is working for the most part, but some of the savings may not materialize thanks to pressure on the system. The IMR process was projected to produce a savings of $400 million related to administrative costs. That was assuming that between 50,000 and 60,000 disputes would make it to IMR each year. By WCIRB’s estimates more than 14,000 IMR cases are being brought each month, putting the system on pace for more than 170,000 cases for the year.  “We think the administrative costs are probably not going to materialize if they stay at this level,” Bellusci said.

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