LEGISLATIVE & REGULATORY ISSUES
DIR Director Outlines Progress on Workers Comp Front in Address to AGC Contractors
By Carol Eaton
the workers’ compensation arena since Christine Baker was appointed as its first female director in 2011. Under her oversight, DIR’s major focus has been on prevention and reform – areas that were substantially bolstered by SB 863, the workers’ comp reform law that took effect in 2013. Baker outlined recent successes as
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well as current and planned initiatives by DIR in an address to the AGC of California State Board of Directors in early May in Sacramento. Among those successes: savings of $1.3 billion annually – equal to about 27,000 jobs – and a 27 percent decrease in medical premiums compared to what they would have been had the law not been enacted, even after a benefit increase to workers in the permanent disability arena.
Primary Focus: Prevention Since Baker took the helm, DIR’s
overarching goal has been prevention in all areas. “We are focused on preventing bad medicine in the workers’ compen- sation system, preventing injuries from occurring, and preventing wage loss, theft and the underground economy,” she said. “Tis is really the first time in my 30 years within DIR that I’ve seen the Department and other agencies go after fraud the way we’re doing it now.” DIR has also focused on improving
its internal efficiencies through a series of modernizations, as well as increasing innovation and breaking down silos throughout the organization. “When I came in we needed to completely rebuild our infrastructure internally; we had lots of work to do,” Baker commented. “But we also have been very frugal and careful with what we
10 July/August 2017
he California Department of Industrial Relations (DIR) has enacted measurable changes in
believe strongly is ensuring the public good and our responsibility for being very careful with dollars that belong to the taxpayers and the employers in the state of California.”
Paradigm Shift One of the biggest “paradigm
changes” Baker pointed to is the shift towards using evidence-based medicine in the workers’ compensation system. Tis new approach takes the decisions of medical care out of the courts and instead utilizes independent medical reviewers/examinations to settle treatment disputes. Tat has brought costs down sharply, and Baker said she expects that 27 percent cost decrease to grow as DIR continues to focus on reducing fraud. Te passage last year of two
additional measures, SB 1160 and AB 1244, also built upon the 2012 workers’ compensation reforms by addressing two critical issues—reducing treatment delays for injured workers and rooting out provider fraud and illegitimate liens. Baker noted those measures, which took effect in January of 2017, ultimately help control costs for employers.
Innovative Drug Formulary On the horizon, DIR is imple-
menting an innovative drug formulary that Baker said will be “the best in the nation.” DIR contracted with an independent research firm to look at incentives on drug dispensing and how to reduce the use of certain drugs like opioids, among other changes that DIR hopes will increase efficiency,
Christine Baker addresses the AGC State Board.
further reduce cost and improve patient treatment. “All of our work in this
worker compensation arena is informed by empirical studies,” Baker said. “We want independent research that can guide us and inform us of savings or cost
implications.”
OSHA, Apprenticeship In addition to the changing
workers’ compensation arena, Baker has also helped drive changes in the operations of Cal/OSHA and in the state’s apprenticeship program, both of which fall under her purview. She noted that 50 new OSHA inspectors have been hired in recent years, and the Department has increased its focus on accountability and training. Additionally, there is a new team on board overseeing apprenticeship and looking at ways to model it after more innovative programs in Europe, she said. “Apprenticeship is a huge goal for us. We intend to double apprenticeship in the next 10 years.” Finally, she noted that DIR is using
its labor enforcement task force and working with other agencies to more strategically target employers who may be in violation of wage and labor rules, rather than randomly hitting employers who often were determined to be in compliance. “Tat is a waste of our resources,” she said. “We are going to continue to use
data to detect patterns of bad behavior,” Baker added. “We’re collaborating with agencies and with associations (like AGC). We love to work with you all, and we’re grateful for your collabo- ration with us and the partnership.”
California Constructor
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