Calif. Congressman Helps Put Schwarzenegger on the Right Path

alifornia Congressman David Dreier (R- San Dimas) is just a little busy these days.
Along with representing Californians in the 26th District and being unanimously selected in 2001 by his California colleagues to chair the state’s Republican Congressional Delegation, Dreier was recently tabbed to chair the transition team for incoming Governor Arnold Schwarzenegger.
Recently, Dreier took time out of his schedule to talk with Insurance Journal.

Insurance Journal: What do you think the election of Arnold Schwarzenegger will mean to residents and businesses in California?
Congressman David Dreier: The people of California voted to recall Gray Davis and replace him with Arnold Schwarzenegger because they wanted change. They wanted a change in leadership and in direction for our state. With the results of this election they are likely to get it. Governor-elect Schwarzeneg-ger ran a positive, results-oriented campaign that resonated with Californians from all parties and across the economic spectrum. I know that he wants to put his considerable personal and business skills to use in order to attract new business and investment to our state. This will in turn create new jobs and create new revenues for the state. Governor-elect Schwarzenegger knows that economic growth will be critical to solving California’s considerable problems. Expect to see him focused on that first.

IJ: Are you confident we will find a solution to the California workers’ comp crisis?
Dreier: I am confident we will find a solution, because we have to find a solution. This issue is one of the top reasons that businesses, and jobs, are leaving California. Recently enacted state legislation is a small step in the right direction, but falls short of the comprehensive overhaul needed. Governor-elect Schwarzenegger has stated several times that workers’ compensation reform is one of his top priorities and I believe that he will examine the current system, explore all feasible options, and work to implement a balanced plan that meets the needs of California businesses and workers.

IJ: What were your thoughts on the proposed increase of car fees in California?
Dreier: I was very much opposed to the increase of the car fees in California. It was a quick fix by Governor Davis that didn’t take into consideration how hard it would hit working Californians. Just about any economist will tell you that raising taxes in the middle of an economic downturn is the worst thing you can do. It stifles growth and hits working families especially hard. Governor-elect Schwarzenegger’s pledge to reverse the tripling of the car tax put in place by Governor Davis is one of the things that attracted me to support his candidacy. I believe that reversing the tripling by fiat is the right thing to do.

IJ: Unlike many other states, California has been able to keep a lid on medical malpractice rates. Do you foresee this continuing and should the rest of the nation look at California as a role model in this area?
Dreier: H.R. 5, the Help Efficient, Accessible, Low Cost, Timely Health Care Act of 2003, was modeled on California’s system and voted on in the House earlier this year. The legislation aims to limit awards in medical liability lawsuits. This bill addresses the problems in the medical liability system by building on one of the country’s most successful tort reform laws, California’s Medical Industry Compensation Reform Act (MICRA), which has for the last 27 years provided Californians with a highly successful health care litigation system that has made health care delivery more accessible and cost-effective. I strongly believe that the seemingly never-ending stream of lawsuits related to medical malpractice are a significant cause of rising health care costs for the consumer. While rightful malpractice suits should be brought against doctors and health care providers who injure their patients, punitive damages that reach into the millions of dollars are causing insurance premiums to be raised to levels beyond what the average American can afford. Additionally, increasing prescription drug costs can be linked, in part, to increasing litigation expenses for their manufacturers. H.R. 5 passed the House 229-196 on March 13. Unfortunately, the Senate has yet to act.

IJ: What advice would you have for independent agents in the state and are you optimistic the industry is on the road to recovery following 9/11?
Dreier: Every sector of the economy, especially the insurance industry, experienced enormous hardships as a result of the 9/11 attacks and other market factors. As small business leaders, California independent insurance agents represent the “engine of growth” for the state’s economy and will play an integral role in putting California “back on track.”

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Topics California