California Combined Losses and Expenses – 82 Percent of CY Premium

01 Jul, 2019 Nancy Grover

                               

Oakland, CA (WorkersCompensation.com) – Medical losses in California’s workers’ compensation system comprised 55 percent of total loss payments in 2018, according to new figures. Of the $4.6 billion, $1.5 billion was paid directly to injured workers, $1.2 billion went for physician services, $0.6 billion was paid for inpatient or outpatient services, $0.1 billion went for pharmaceuticals and $0.3 billion was paid for medical-legal evaluations. The overall figure is down from the calendar year 2017 amount of $4.7 billion.

The numbers are included in the California Workers’ Compensation Insurance Rating Bureau’s report on 2018 California Workers’ Compensation Losses and Expenses. The estimated costs for California’s workers’ compensation system are based on insured employer experience and is issued annually pursuant to California Insurance Code and

Less money was spent on medical cost containment programs in 2018; $426 million compared to $443 million in 2017.

Indemnity benefits paid in 2018 totaled $3.8 billion — 45 percent of total loss payments — and were split between $1.8 billion for temporary benefits and $1.5 billion for permanent partial payments.

Insurers’ combined losses and expenses for 2018 were $14.3 billion or 82 percent of calendar year premium. That compares with 92 percent, or $16.2 billion in the previous year.

The WCIRB report comes on the heels of its regulatory filing submitted last week to California Insurance Commissioner Ricardo Lara.


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    About The Author

    • Nancy Grover

      Nancy Grover is a freelance writer having recently retired as the Director, Media Services for WorkersCompensation.com. She comes to our company with more than 35 years as a broadcast journalist and communications consultant. Grover’s specialties include insurance, workers’ compensation, financial services, substance abuse, healthcare and disability. For 12 years she served as the Program Chair of the National Workers’ Compensation and Disability Conference® & Expo. A journalism/speech graduate of Ohio Wesleyan University, Grover also holds an MBA from Palm Beach Atlantic University.

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