According to a state audit, reforms made to California's workers' compensation system could significantly cut the cost of treating workplace injuries. The workers' comp law limits the use of medical services by placing a cap on outpatient surgical center payments and drug reimbursements. California businesses hope that this reduction in costs will lead to a significant decrease in workers' comp insurance premiums, which are very high in California.
See "Reforms Cut Worker Comp Cost, Audit Finds", Marc Lifsher, Los Angeles Times, January 27, 2004