California: Combined ratio up to 122 percent for calendar year 2011
The 122 percent is the highest combined ratio for the state since 2001, according to the Workers' Compensation Insurance Rating Bureau.
The WCIRB released its annually mandated report on workers' comp losses and expenses for 2011.
The report shows medical losses paid in 2011 were $4.4 billion, or 60 percent of total loss payments. That's up from $4.3 billion in calendar year 2010.
Of the total, physicians received the highest amount -- $1.5 billion, hospitals received $1.1 billion, injured workers received $987 million, and pharmacies were paid $370 million. The total paid for medical cost containment programs in 2011 was $384 million, up from $356 million in 2010. Another $174 million was paid for medical legal evaluations.
Indemnity payments paid in 2011 were $3 billion, including $1.5 billion for temporary disability and $1.2 billion for permanent partial benefits.
Additional statistics in the report include:
- Total insurer losses in 2011 were $7.7 billion -- 74 percent of calendar year premium. That compares to $7.1 billion in 2010.
- Total loss adjustment expenses in 2011 were $2.6 billion, up from $1.9 billion in 2010. Both allocated and unallocated loss adjustment expenses "increased sharply in 2011," according to the report.
- The combined ratio for CY 2011 was 122 percent, up from 117 percent in 2010 and 2009, and 101 percent in 2008.
Read more at the WorkersComp Forum homepage.
July 26, 2012
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