Californians accounted for 22.3 percent of all cash and medical benefits paid to injured workers in calendar year 2004, according to the latest estimates released by the National Academy of Social Insurance.
The NASI findings were reported by the California Workers' Compensation Institute, which noted the academy's data does not fully reflect the effect of reforms passed in the state between 2002 and 2004–many of which were not fully implemented or did not take effect until after 2004. CWCI said its own information, as well as data from the California Rating Bureau and others, show that claim costs, frequency and premiums are all down sharply since 2004.
However, CWCI noted that even after those reductions, the scope of the California workers' comp system–whether measured by covered wages, covered employees, employer costs or employee benefits–means California's market "will undoubtedly remain the largest in the nation, and one of the largest in the world."
In 2004, California represented 11.7 percent of all jobs covered by workers' comp and 13.2 percent of covered wages. Nationwide, in 2004 state and federal workers' comp programs–encompassing both insured and self-insured employers–covered nearly 126 million workers and just under $5 trillion in covered wages.
Benefit payments under the nation's workers' comp programs totaled $56 billion–$26.1 billion for medical care and $29.9 billion in cash benefits to injured workers–up 2.3 percent from 2003.
California had 14.7 million covered workers, $653 billion in covered wages and $12.5 billion in benefit payments for the 2004 calendar year. That's nearly four-times the benefit total for New York, which ranked second with $3.3 billion in benefit payments–and just ahead of the federal government, which ranked third with just under $3.3 billion in payments for its workers' comp programs.
CWCI noted 14 other states also paid more than $1 billion in benefits, and the 10 highest-volume jurisdictions accounted for more than 60 percent of the nationwide total.
Total 2004 workers' comp benefit payments increased in 40 of the 50 states, the District of Columbia and in federal programs. California's $56 million increase in benefit payments–up 0.5 percent–was due entirely to a $313 million jump in indemnity payments, which more than offset a $257 million drop in medical payments.
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