January 21, 2025 – California Public Self-Insured: A recent report by the Office of Self-Insurance Plans (OSIP) highlights a notable reduction in California public self-insured workers’ compensation claims for the fiscal year (FY) 2022/23. This decline, primarily due to a sharp drop in indemnity claims, marks an essential shift in the workers’ compensation landscape.
Key Findings
- Public self-insured claim volume decreased by 16.8% compared to the previous year.
- Total paid losses reduced for the first time since the 2012 workers’ compensation reforms.
- Total incurred losses also saw a decline, continuing a trend observed since the pandemic began.
Report Details
The report focuses on the experiences of public entities, such as cities and counties, that self-insure their workers’ compensation. The number of claims filed in FY 2022/23 was 120,328, significantly lower than the record high of 144,676 in FY 2021/22. This reduction likely stems from fewer COVID-19 claims among public sector employees.
Changes in Benefit Payments
Despite the overall decline in claims, the average benefit payment per claim rose by 4.9%, reaching $4,241. This increase resulted from a slight decrease in average paid medical costs, which dropped to $1,605, while average indemnity payments remained stable at $2,636.
Incurred Losses Trend
Incurred losses, which include paid amounts and reserves for future payments, presented a mixed pattern. While the total incurred loss decreased by 8.3%, the average incurred loss per claim increased by 10.0%. Both average incurred indemnity and medical costs per claim saw an upward trend.
Additional Information
OSIP also collects data on private self-insured claims, reported on a calendar year basis, which lags behind the public self-insured data. The next report on private self-insured experience is anticipated next summer.
For a detailed analysis and comparisons over the past decade, refer to the CWCI Bulletin and OSIP’s annual summaries.
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