Total losses and expenses in California’s workers’ compensation system incurred in 2024 were $16.7 billion, or 108% percent of earned premium, a report out today shows.
The Workers’ Compensation 农夫导航 Rating Bureau of California released , an overview of statewide insurer losses and expenses for the 2024 calendar year.
In calendar year 2024, earned premium totaled $15.5 billion, down from $15.8 billion of premium earned in 2023. Total insurer paid losses in 2024 were $9.5 billion, or 61% percent of calendar year earned premium, according to the WCIRB.
Based on insurer statutory annual statement information, the bureau estimates policyholder dividends incurred in 2024 to be 0.7% of 2024 earned premium, resulting in an underwriting loss of $1.3 billion, or 8.4% of premium.
The report shows that $5.2 billion, or 54% of total loss payments, were for medical benefits last year. Additionally, $4.4 billion, or 46% of total loss payments, was for indemnity benefits (including vocational rehabilitation benefits).
Summary of Medical Losses Paid by Medical Category:
| Category | CY 2023 | CY 2024 |
| Payments Made Directly to Injured Workers | $1.56 billion | $1.69 billion |
| Physician Services | $1.26 billion | $1.39 billion |
| Hospital (Inpatient and Outpatient) | $0.53 billion | $0.58 billion |
| Medical-Legal Evaluations | $0.40 billion | $0.44 billion |
| Medical Supplies and Equipment | $0.27 billion | $0.28 billion |
| Medicare-related Payments | $0.24 billion | $0.24 billion |
| Medical Cost Containment Programs (medical loss only) | $0.11 billion | $0.12 billion |
| Medical Liens | $0.08 billion | $0.10 billion |
| Pharmaceuticals | $0.06 billion | $0.06 billion |
| Other | $0.19 billion | $0.25 billion |
| Total Medical Losses Paid | $4.7 billion | $5.2 billion |
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