CWCI reports on self-insured costs per claim

By CMTA Staff

Capitol Update, Sept. 24, 2010 Share this on FacebookTweet thisEmail this to a friend

According to a recent California Workers’ Compensation Institute (CWCI) report, the number of workers’ comp claims filed by self-insured employers fell in 2009 but the amount paid for each claim increased on average. The self insured employers in the report represent 2.17 million employed Californians in 2009.

CWCI stated that the amount paid for workers comp claims declined 4.1 percent from 2008 despite an 11.2 percent drop in the number of claims filed.  81,473 total claims were filed in 2009.

Losses paid at the end of 2009 totaled $183.5 million. $69.3 million went to indemnity and $114.2 million to medical costs.  That compares to $191.4 million recorded in 2008.

The cost of each claim rose to $2,252 – a 7.9 percent increase over the $2,087 per claim cost recorded in 2008 and 30.2 percent higher than the lowest point since the major system reform ($1,720 recorded in 2005).

The decrease in claims, but the increase in costs per claim points to a serious trend in cost increases in the system that need to be controlled.

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