April 09, 2025 – MedLegalNews – SACRAMENTO, CA – Speakers at the California Workers’ Compensation Institute (CWCI) annual conference discussed the growing pressure on the Subsequent Injuries Benefits Trust Fund (SIBTF) and the likely delays in reform. While SIBTF reform is under consideration, experts suggest that significant legislative changes may not occur until after 2025.
Reform Timeline: Slow and Steady
CWCI General Counsel Gideon Baum pointed out that major reforms are unlikely in the near term, especially with the upcoming election year focusing on budget discussions and ballot measures. “2025 will prioritize the budget and the ballot,” Baum said. Although the workers’ compensation system is under increasing strain, Baum highlighted that change is essential but will take time to implement.
The Impact of SIBTF’s Growth
Stacee Williams, CWCI Vice President, shared concerning data about the rise in SIBTF liabilities, with benefit payments now exceeding $600 million annually. The number of claims has also tripled since 2015, prompting further strain on the system. Despite the escalating numbers, Williams stressed that meaningful reform remains a long-term goal.
“We’re seeing costs rise, and there’s no cap in sight,” Williams said, referring specifically to increasing medical-legal fees and permanent disability payouts.
Proposed Legislative Changes for SIBTF
While some legislators have floated potential changes, such as State Senator Tom Umberg’s proposal to rename SIBTF to the “Permanent Disability Increase Program (PDIP),” experts predict these proposals will likely not gain traction in 2025. On the other hand, Assemblymember Liz Ortega has called for greater oversight, particularly regarding how benefits are calculated and verified.
Medical-Legal Expenditures Under Scrutiny
The RAND Corporation’s 2024 report raised concerns over the rising costs of medical-legal reports, which now account for roughly 20% of SIBTF’s spending. Speakers at the conference noted that these expenditures do not directly benefit injured workers, undermining the core mission of the system.
Business Groups and Employers Speak Out
Ashley Hoffman, a policy advocate with the California Chamber of Commerce, voiced concern over the expansion of the SIBTF and its impact on employers. “While the system was designed to protect vulnerable workers, the current structure is unsustainable and unfair to employers,” she said. Hoffman added that reform is needed, but it likely won’t happen before 2025.
What’s Next for SIBTF?
As discussions continue, employers, injured workers, and stakeholders must stay informed and proactive. The need for reform is undeniable, but the timeline remains uncertain. Monitoring claims and ensuring compliance with the existing framework will be key as the system moves forward.
Read More on SIBTF.org
For more information on the Subsequent Injuries Benefits Trust Fund and its current issues, visit SIBTF.org:
- Doctor Pleads Guilty to Writing SIBTF Reports After Suspension
- California Employers Face Mounting SIBTF Liabilities
- Summary and Background of SIBTF
- California’s Subsequent Injuries Benefits Trust Fund
Stay tuned for more updates as stakeholders push for necessary changes in the system.
Know Your Rights. Stay Informed.
Whether you’re an injured worker or an employer navigating California’s workers’ compensation system, staying informed about legal protections and obligations is crucial. For more insights, legal updates, and expert analysis, visit MedLegalNews.com.