April 09, 2025 | Sacramento, CA — MedLegalNews.com – Discussions at the CWCI annual conference indicate that meaningful SIBTF reform 2025 is unlikely before the end of the year, despite rising liabilities and growing concerns over medical-legal expenditures. Experts emphasize that while reform is necessary to sustain the fund and support injured workers, legislative and budget priorities may delay implementation.
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.
For more information on the Subsequent Injuries Benefits Trust Fund and its current issues, visit SIBTF.org.
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FAQs: SIBTF Reform 2025
What is SIBTF reform 2025?
SIBTF reform 2025 refers to proposed changes to the Subsequent Injuries Benefits Trust Fund aimed at improving oversight, controlling costs, and ensuring benefits reach injured workers efficiently.
Why has SIBTF reform 2025 been delayed?
The reform timeline is affected by California’s election year, budget priorities, and complex legislative processes, making it unlikely that significant changes will occur before 2026.
How does SIBTF reform 2025 impact employers?
Employers face growing financial pressure from rising SIBTF liabilities and medical-legal costs. SIBTF reform 2025 could influence premiums, reporting requirements, and claims management practices.
What changes are being considered under SIBTF reform 2025?
Proposals include greater oversight of benefit calculations, regulation of medical-legal reports, and potential restructuring of the fund, such as renaming it the Permanent Disability Increase Program (PDIP).