Compromise reached on workers’ comp reform

Thursday, April 15, 2004 | 9:05 a.m.

SACRAMENTO -- California's workers' compensation system, the most expensive in the nation, would get a broad overhaul in a deal reached Wednesday between legislators and Gov. Arnold Schwarzenegger.

Officials said Schwarzenegger succeeded in pushing through two key elements: The bill will not regulate insurance rates, and will allow insurers and employers to select pools of doctors injured workers must use.

Schwarzenegger made workers' comp a centerpiece of his campaign for governor, and final approval of the bill would represent a fresh political victory for the Republican governor. If passed by the committee, the bill will face votes in the Legislature on Friday.

For months, Schwarzenegger has prodded lawmakers to overhaul a system with the nation's highest bills to employers and some of its lowest benefits to injured workers.

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