July 6, 2006

Christine Baker

CHSWC Approves a Proposal for Further Analysis of the State Disability Insurance Study

Oakland -- The California Commission on Health and Safety and Workers' Compensation (CHSWC), has approved a proposal for further analysis of the State Disability Insurance (SDI) study. Findings in the current CHSWC study on the relation of occupational injury rates and SDI suggest that SDI may be paying benefits for a substantial fraction of conditions that are actually work-related, at least during periods of high workers’ compensation premiums. The proposed study design would extend these data from the current study which covers the years 2000-2002 to include the years 1993-2005 and would estimate the effects of occupational injuries on the broad spectrum of social welfare and social insurance programs.

Some of the issues that would be analyzed in the study include: how recent changes to overall workers’ compensation benefits, particularly permanent partial disability, apportionment and medical treatment have affected the fraction of occupational injuries (employer-paid) being shifted to SDI (employee-paid); and how the recent run up in workers’ compensation premiums may have affected whether claims are made in workers’ compensation or SDI.

CHSWC, created by the workers' compensation reform legislation of 1993, is charged with overseeing the health and safety and workers' compensation systems in California and recommending administrative or legislative modifications to improve their operation. CHSWC was established to conduct a continuing examination of the workers' compensation system and of the state's activities to prevent industrial injuries and occupational diseases and to examine those programs in other states.

Information about CHSWC and the Proposal for further analysis of SDI study may be accessed on the Internet at CHSWC's home page at Information may also be obtained by writing to CHSWC at 1515 Clay Street, Suite 901, Oakland, California, 94612, by calling (510) 622-3959, by faxing a request to (510) 622-3265, or by email at