Insurer losses and expenses rose in 2014 from the year before but ratios fell, a California Workers’ Compensation Insurance Rating Bureau report on workers’ comp losses and expenses for 2014 shows.
The report issued Tuesday shows total insurer losses incurred in calendar year 2014 were $11.1 billion (68 percent of calendar year premium) compared with $10.3 billion (72 percent of calendar year premium) in 2013.
Total insurer loss adjustment expenses incurred in calendar year 2014 were $2.9 billion compared with $2.6 billion in 2013, according to the report.
The report shows the combined loss and expense ratio for calendar year 2014 was 104 percent, down from calendar year 2013’s 108 percent ratio.
Other findings in the report show:
- Medical losses paid in 2014 were $5.0 billion (60% of total loss payments). Of these payments, $1.4 billion were paid for physician services, $1.2 billion were payments made directly to injured workers, $600 million were paid to hospitals, $400 million were paid for pharmaceuticals, and $300 million were paid for medical-legal evaluations.
- The total cost of medical cost containment programs in 2014 was $471 million compared with $447 million in 2013.
- Indemnity benefits paid in 2014 were $3.4 billion (40 percent of total loss payments). Of this amount, temporary disability benefits paid totaled $1.6 billion and permanent partial disability benefits paid totaled $1.4 billion.
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