Complete Employees’ Compensation Declare Prices Principally Secure in California since 2010, Finds WCRI Examine

Total number of employees? The cost of compensation claims has been largely stable in California since 2010, the WCRI study found

• 04/15/21
• WorkersCompensation.com

Cambridge, MA (WorkersCompensation.com) – According to a study published by the Workers Compensation Research Institute (WCRI), the total cost per incident with more than seven days of downtime in California has been largely stable since 2010. In 2019, the last year of the investigation period, the total costs per loss event rose moderately.

“The increase in total cost per incident in 2019 was mainly due to a 6 percent increase in compensation per incident. In the earlier period from 2015 to 2018, compensation payments per claim had remained relatively stable, ”said Ramona Tanabe, WCRI Executive Vice President and General Counsel.

The CompScope ™ Benchmarks for California, 21st Edition study found that several factors contributed to the growth in compensation per claim in 2019. The average weekly wage of workers with injuries rose 4 percent, the average duration of temporary disability benefits increased 2 percent, and the average permanent partial disability (PPD) / lump sum per PPD / lump sum rose 8 percent.

Other results of the study include:

• The total cost per entitlement paid in California was higher than in other study states, around 30 percent higher than the median for the study state.
• Compensation per claim for claims with more than seven days of downtime was higher compared to the other study countries, reflecting several system features.
• Medical payments per claim with more than seven days of downtime have been stable in California since 2015, after falling 2 to 7 percent annually following the implementation of Senate Act 863.
• California service delivery cost per entitlement was among the highest in the 18 study states and was stable or declining after 2015.

CompScope ™ Benchmarks is an annual study that compares the performance of state employee compensation systems in California compared to 17 other states. The report focuses on costs, income benefits, total medical payments, benefit utilization, duration of temporary disability, frequency and payments of PPD / lump sum claims, benefit costs, litigation, timeliness of payments, and other performance metrics. The study also examines how these system performance metrics changed, particularly from 2014 to 2019 for entitlements with different entitlement durations.

To learn more about this study or to purchase a copy, visit https://www.wcrinet.org/reports/compscope-benchmarks-for-california-21st-edition. William Monnin-Browder wrote this study.

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