Californians came close to having a single payer medical care system recently, but to no one’s surprise it was vetoed by Republican Governor Arnold Schwartzenegger. However, even if he had signed the legislation into law, a major area of medical coverage would have remained dysfunctional: work related illness and injury covered by the workers compensation system.
This past Sunday’s business section of the San Francisco Chronicle featured an article titled “Altering the workers’ comp system.” Two years ago this same governor signed legislation that reformed the much-criticized system. According to the Chronicle, Governor Schwartzenegger regards these reforms as the crowning achievement of his administration thus far. And why not? The change has reduced insurance payouts 60% (from $24 billion in 2004 to an estimated $10 billion this year). As a result, businesses now pay 60% less in workers compensation insurance premiums. Which was what the political pressure for reform was about and why it’s the Governor’s crowning achievement. Remember, this is from the business page.
Those cost and premium reductions are attributed to a 46% drop in the number of claims for workers compensation. Does that mean that workplaces somehow became 46% safer because of these reforms? The business view is that workers in collusion with doctors can no longer pull treatment scams. The more likely explanation is that the reforms have made the process so horrible that workers seek help through their regular medical insurance. That’s the same medical insurance system that’s falling apart. So basically what has happened is that workers have been further discouraged from using the workers compensation system and their care has further burdened the medical insurance system, all to the benefit of business.
In contrast, an article in the latest issue of the International Journal of Occupational and Environmental Health argues that the whole system should be abolished and replaced with one in which illness and injury be treated regardless of origin. But that’s only half of the proposed change. Businesses would not be off the hook for creating health damaging work environments. Public health and occupational health and safety agencies would track illness and injury by occupation, industry, and location. Those with poor records get scrutinized and are made to change.
Under the workers compensation system, whether old or reformed, the only incentive businesses have to make work environments safer is the cost of workers comp insurance premiums. Like all other costs, businesses will work hard to avoid them and very likely not by spending money to protect worker health.
Most of our day is spent at work, in an environment over which we have little or no control. That environment exposes you to things that can make you sick and circumstances that can hurt you. I’m sure businesses would very much like someone else to pick up the tab for the cost of work-related illness and injury. What they won’t like is being forced to create work environments that don’t damage health. It helps to have a Governor who has their interests at heart.
The moral of this story is that there is a very direct relationship between your health and your political power, whether exercised at the ballot box or on the equivalent of your work environment’s shop floor. The more information and control you have over your work environment, the better your health.
Related resources are available on the Environmental Health page.
