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WCIRB Releases Report on Losses and Expenses for Calendar Year 2016

The WCIRB has released its report on workers' compensation losses and expenses for 2016. The report is prepared annually pursuant to Section 11759.1 of the California Insurance Code.

Among the findings included in the report:

  • Medical losses paid in 2016 were $4.8 billion, or 57% of total loss payments. Of these payments, $1.2 billion were paid for physician services, $1.3 billion were payments made directly to injured workers, $0.6 billion were paid to hospitals, $0.3 billion were paid for pharmaceuticals, and $0.3 billion were paid for medical-legal evaluations.
  • The total cost of medical cost containment programs in 2016 was $468 million compared to $510 million in 2015.
  • Indemnity benefits paid in 2016 were $3.6 billion, or 43% of total loss payments. Of this amount, temporary disability benefits paid totaled $1.8 billion and permanent partial disability benefits paid totaled $1.5 billion.
  • Total insurer losses incurred in calendar year 2016 were $10.7 billion, or 60% of calendar year premium. In calendar year 2015, total insurer losses incurred were $10.7 billion, or 62% of calendar year premium.
  • Total insurer loss adjustment expenses incurred in calendar year 2016 were $2.8 billion compared to $3.1 billion in 2015.

To view a copy of the report, click the link below.

Report on 2016 California Workers' Compensation Losses and Expenses (Rel. June 28, 2017)

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