Workers’ Compensation Claims in California – Good News For Employers

The California workers’ compensation system is more than 100 years old and has more than 500 insurance companies insuring nearly 700,000 businesses. The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has released a report covering the state of the system in 2019.

Indemnity Claims

Indemnity claims are all losses, liabilities, damages, costs, expenses and attorneys’ fees related to injury to persons or damage to property. In 2019, there were 14.4 indemnity claims per 1,000 employees. Indemnity claims have been slowly declining.

Average Medical Coset

In 2018, the average medical cost per indemnity claim was $32,479. According to the report, “From 2011 to 2016, average medical costs decreased by 5% per year, primarily driven by reforms from SB 863, SB 1160 and AB 1244 as well as efforts to reduce medical provider fraud.”

Conclusion

Of course, insurance companies are never satisfied with good news – they seek more profit. Despite many positive trends for employers, no doubt the insurance industry will seek further “reforms” to reduce protections for injured workers and increase their bottom line.

Sources:
https://www.wcirb.com/sites/default/files/documents/2019_state_of_the_system_report.pdf