California Is Most Expensive State For Workers’ Comp

Source: Sacramento Business Journal

Ouch — the cost of workers’ compensation in California is more expensive than any other state in the nation, a new study says.

The Workers’ Compensation Premium Rate Ranking Summary from Oregon’s Department of Consumer and Business Services reveals that California businesses spend $3.48 for every $100 of payroll issue on workers’ comp expenses.

The ranking demonstrates a trend, as California was the third-most expensive state in 2012 and the fifth-most expensive in 2010, the Los Angeles Daily News reports.

The $3.48 mark represent a 188 percent of the median cost of $1.85 for all 50 states.

Separately, a new study looking at the 2013 fee schedule changes projects that California workers comp office visit payments will increase 8 percent overall.

“California’s workers’ compensation system is incredibly inefficient,” said Jerry Azevedo, a spokesman for the California-based Workers’ Compensation Action Network, told the Daily News.

Azevedo’s group aims to reduce costs for employers and improve services to injured workers.

Second on the list is Connecticut, at $2.87 of every $100 in payroll going toward workers’ compensation costs. The top five are rounded out by New Jersey ($2.82), New York ($2.75) and Alaska ($2.68).

Ranking lowest was North Dakota, where a mere 88 cents of every $100 in payroll goes toward workers’ comp costs.