Article ID: 48efddaa40ab4f9871ff4162d47b8ebd842a39664d56c60eeb4d254e7ec873e4
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: bs4_heuristic
URL: https://www.businessinsurance.com/california-comp-medical-costs-rise-5-med-legal-spending-surges/
Body Text
California comp medical costs rise 5%; med-legal spending surges - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers California comp medical costs rise 5%; med-legal spending surges by Louise Esola Workers Comp , Workers Comp Pricing Sep 1, 2026 Medical service costs per California workers compensation claim rose 5% in 2025, while medical-legal costs increased 13% and costs in Southern California climbed 8%, according to a report released Tuesday by the Workers’ Compensation Insurance Rating Bureau of California. The overall increase reflected a 4% rise in average payments per medical transaction and a 1% increase in utilization, according to the report. Medical-legal services, which represented 17% of medical payments in 2025, were among the largest cost drivers. Medical-legal costs per claim have risen 47% since 2021, including a 30% increase in services per claim, with cumulative trauma claims contributing substantially to the growth. Interpreter services were the fastest-growing medical service category over the five years ending in 2025. Interpreter costs per claim rose 141% during that period as utilization increased 93% and average payments per transaction climbed 25%. Interpreter services accounted for 3.6% of total medical payments in 2025. Medical equipment and other services costs per claim increased 8% in 2025 and have risen 55% since 2020. Transactions per claim in that category were more than twice as high in Southern California as in Northern California, the report said. Services not subject to fee schedule limits also accounted for a growing share of spending. Their share of total medical payments increased to 17% in 2025 from 12% in 2021, while utilization rose 20% over the period. Physician services remained the largest category, accounting for 48% of medical payments, but cost growth slowed to 4% in 2025 from 12% in 2024. Pharmaceutical costs continued to move in the opposite direction. They represented 2% of medical payments in 2025, down from 11% in 2015, and costs per claim declined 30% between 2020 and 2025. Related News HDI hires former Canopius executive September 1, 2026 OpenAI allegedly hit delete on evidence September 1, 2026 Kentucky court overturns $22.5M award in fatal concrete-form collapse September 1, 2026 Court denies claim alleging work-related stress caused heart attack September 1, 2026 Vantage hires former Nationwide leader to head cyber September 1, 2026 Modeled catastrophe losses increase 12.5% in 2026 September 1, 2026 Hub names real estate practice leader for Canada September 1, 2026 Abundant capacity expected to keep property reinsurance market soft September 1, 2026 Nepal flood losses to mainly hit global reinsurers September 1, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
Metadata (JSON)
{
"score": 12.75
}