Soaring medical insurance costs are a sore spot for California employers

Soaring medical costs may drive up premiums paid by already beleaguered California employers for workers' compensation insurance, after rates plunged 65% over the last six years. Gov. Arnold Schwarzenegger, who forged major changes in the state workers' comp law in 2004 that slashed rates, has launched a bid to stop a potential 24.4% rate hike now being discussed.