Calif. workers comp cost declines short-lived: Analysis

Workers compensation medical expenses in California have risen steadily since the adoption of reforms from 2002 to 2004, according to new research.

A sharp decline in medical expenses after the workers comp reform efforts was short-lived, researchers for the Oakland-based California Workers’ Compensation Institute concluded in the study released Monday.

Average payments for treatments, pharmaceuticals, medical equipment and medical cost containment have been rising steadily since 2005, according to the research that examined more than 500,000 workers comp claims in the state.

For example, CWCI researchers found that after declining 14.1% from $6,381 in accident year 2002 to a post-reform low of $5,480 in accident year 2005, average first-year medical payments on indemnity claims jumped 63.4% from 2005 through 2009, when they reached $8,956.

The CWCI study, “Medical Development Trends in California Workers’ Compensation Accident Years 2002-2010,” is available at www.cwci.org/research.html.