A recent study conducted by the California State Controller’s Office determined that workers comp costs for government and schools have risen as much as 55%. Out of control workers comp costs are severely impacting programs in state government, cities, counties, and schools throughout the state.
A California Chamber of Commerce study revealed that California employers pay the highest workers compensation costs in the nation: $6.33 of every $100 of payroll vs. national average of $2.46. Additionally, Workers compensation costs have risen 136% in the last four years, with some companies experiencing 300% increases in their premiums.
A study by the California Commission on Health and Safety and Workers’ Compensation indicated that workersÍ compensation costs more than other medical care. In fact, total medical treatment costs are estimated to be 50 to 100 percent higher in workersÍ compensation than treatments paid for by private health insurance. Workers compensation paid 40 to 45 percent more for prescription medication than drugs purchased by employer-sponsored health plans.