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Total costs per claim stable following California comp reform

Total costs per claim stable following California comp reform

Total costs per claim in California have remained stable after workers compensation reform legislation took effect in January 2013, according to a study released Tuesday by the Workers Compensation Research Institute.

Senate Bill 863 reforms included fee schedules for home health care, an independent review process for medical treatment and billing disputes, language interpretation and other comp-related services and fees for lien filings. The bill was signed into law in 2012 and implementation began in 2013.

Indemnity benefits per claim in California grew 5% in 2014 due to an increase to partial disability benefits outlined in the legislation. In 2015 and 2016, indemnity benefits per claim grew 6% due to an increase in wages and permanent partial disability lump-sum payments, Cambridge, Massachusetts-based WCRI said.

Medical payments per claim decreased steadily after the law took effect. Claims with 12 months of experience decreased 3% from 2012/2013 to 2015/2016. Claims with 24 and 36 months of experience decreased 4%, WCRI said. 



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