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 Insurance Rating Bureau of California released the 2024 California Workers’ Compensation Losses and Expenses report, 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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