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Garamendi eyes reform of worker's comp plans.
(From Insurance Day)
Byline: Richard Banks
CALIFORNIA insurance commissioner John Garamendi is today expected to ask state legislators for further reforms to the workers' compensation scheme.
Mr Garamendi will appear before the state senate insurance committee to answer questions on recently-passed reforms, which he claims will save the current $29bn system $5.6bn.
But the commissioner is also expected to call for further reforms. He is looking to overturn the situation in which employers in California pay the highest premiums in the US and injured workers receive some of the lowest benefits.
Mr Garamendi has the ear of the newly-appointed governor of California, Arnold Schwarzenegger, who has called a special session of the legislature to address the workers' compensation issue.
Insurers, too, are backing further reforms, saying that without them the cost savings in the legislation that Mr Garamendi helped push through could be eroded.
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