California medical benefits claims among the highest in the US: WCIRB

California medical benefit per claim 60% higher than the national average

Workers Comp

By Allie Sanchez

Despite the decline in the severity of the average medical claim in California since 2010, the average medical benefit per claim in the state remains among the highest in the US, a recent report said.

The 2016 State of the California Workers’ Compensation Insurance System report revealed that costs of medical benefit claims in the state is more than 60% above the country wide median.
This report was presented by the Workers’ Compensation Insurance Rating Bureau (WCIRB).

Also unlike the national down trend in indemnity claim frequency, rates in California increased, which was largely driven by a climb in the Los Angeles Basin area, which was 30% higher than the statewide average. In contrast, the indemnity claim frequency in the Bay Area was 15% lower.

In general, California’s insurance rates are largely driven by the highest frequency of permanent disability claims across the country, as well as extremely higher than average costs of handling claims and benefits delivery. The state’s insurance rates are on the average the highest in the country.
 

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