Article ID: 45ff1a156a17f76462508d326bd8014175fea0e21bc8bcaa5bd38f9b8cca8796
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URL: https://www.businessinsurance.com/calif-employers-anticipate-comprehensive-reforms-in-2027/
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Calif. employers anticipate comprehensive reforms in 2027 - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Calif. employers anticipate comprehensive reforms in 2027 Workers Comp Coverage Jul 10, 2026 Employers are preparing for negotiations next year over permanent disability benefits and workers compensation reforms, the chief lobbyist for the California Coalition on Workers’ Compensation said Wednesday. Jason Schmelzer said at the CCWC conference in Anaheim that employers hope to balance any benefit increase with medical delivery changes and savings on medical-legal costs and cumulative trauma claims. He said SB 555, which would increase permanent disability benefits by 51%, could become a vehicle for reform. The bill was pulled from an Assembly Insurance Committee hearing in June and is out of consideration this year. Permanent disability benefits have not been adjusted since 2014, while cumulative inflation has reached about 40%, Mr. Schmelzer said. “This is a pending problem, and it’s something we’re going to have to deal with in the next year,” he said. Employers will seek savings about twice the size of any benefit increase because savings can erode, he said. The initial estimate of the PD increase was $1.8 billion. Cumulative trauma claims are employers’ primary concern, Mr. Schmelzer said, noting claims can be filed on the first day of employment. “That doesn’t seem very cumulative,” he said. Employers have concerns about medical-legal costs and quality, while labor is focused on treatment access and medical provider networks. “There are too many MPNs whose doctors don’t see workers’ comp patients and cause people to wait,” Mr. Schmelzer said. Separately, Mr. Schmelzer praised Gov. Gavin Newsom for pushing reforms to the Subsequent Injuries Benefits Trust Fund included in SB 171, a budget trailer bill awaiting action. The measure would require preexisting conditions to be labor-disabling and documented in medical evidence, require supporting medical-legal evidence to be collected during the primary claim process, mandate use of the combined values chart and impose filing deadlines. Rand Corp. estimated in 2024 that SIBTF liabilities ranged from $6.4 billion to $10.5 billion. The Legislative Analyst’s Office last year estimated $2 billion to $3 billion in benefit costs but said a backlog of 25,000 to 30,000 claims could conceal the true figure. “This wouldn’t have happened without the governor’s push,” Mr. Schmelzer said. “I hope he signs it soon.” WorkCompCentral is a sister publication of Business Insurance. More stories here . 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