Calif. WC Costs Per Claim Continue Growth

  Wednesday, January 21st, 2004 Source: Insurance Journal

California workers‘ compensation costs per claim in California continue to grow rapidly, increasing 15 percent from 2000 through 2001 (as of 2002) and are accelerating, according to a new study from the Cambridge, Mass.-based Workers Compensation Research Institute. California has more cost drivers and more persistent cost growth than any other state in the study of 12 large states. The study noted that in California the average cost of a workers‘ compensation claim with more than seven days of lost time is $29,745 - 28 percent higher than the median of the study states (1999 claims as of 2002, with 36 months of experience). Significant cost drivers in California include: *Medical costs per claim that were 20 to 52 percent higher than the 12-state median, resulting primarily from higher use of services, not higher prices. *Duration of periods of temporary disability for injured workers that were

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