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Calif. comp insurers spent 91% of premiums on losses in 2017

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Total workers compensation insurer combined losses and expenses incurred in 2017 were $16.2 billion, or 91% of calendar year premium, compared with $16.9 billion, or 94% of calendar year premium, in 2016, the Oakland, California-based Workers’ Compensation Insurance Rating Bureau released in its annual report Tuesday.

The report also found that medical losses paid in 2017 were $4.7 billion, or 56% of total loss payments. Of these payments, $1.3 billion were paid for physician services, $1.3 billion were payments made directly to injured workers, $700 million were paid for inpatient or outpatient services, $200 million were paid for pharmaceuticals, and $300 million were paid for medical-legal evaluations, according to a post on WCIRB’s website.

The ratings agency also reported:

  • The total cost of medical cost containment programs in 2017 was $443 million, compared with $468 million in 2016.
  • Indemnity benefits paid in 2017 were $3.7 billion, or 44% 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 combined losses and expenses incurred in 2017 were $16.2 billion, or 91% of calendar year premium, compared with $16.9 billion, or 94% of calendar year premium, in 2016.