Today’s issue of WorkCompRecap features the California WCIRB’s recent release of a new report that examines duration drivers for California workers’ compensation claims, including how claim duration differs regionally across the state.
Key findings from the report included that it takes seven years to close 90% of claims in California compared to three years for the median state, and longer California claim duration is driven by four “duration drivers,” including a higher share of permanent partial disability (PPD) and cumulative trauma claims in California, a greater utilization of medical-legal services in California and regional differences within the state. The report also notes that claim closing rates increased steadily following the reforms of Senate Bill 863, particularly for PPD claims of lower-wage workers. Claim closing rates were found to have declined during the pandemic in 2020 and were relatively flat in 2021.