State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2002-076

  DATE:
  November 25, 2002

  TO:
  Health and Safety Officers
  Personnel Officers
  Return-to-Work/Claims Coordinators

  FROM:
  Department of Personnel Administration
  Benefits Division

  SUBJECT:
  Workers' Compensation Costs, Fiscal Year 2001/2002

  CONTACT:
  Keith Mentzer, Workers' Compensation Coordinator
  (916) 445-9792, CALNET 485-9792
  FAX: (916) 322-3769
   
  Email: keithmentzer@dpa.ca.gov


  Workers' compensation payment data for FY 2001/2002 is now 
  available on DPA's Web site at www.dpa.ca.gov.  Go to 
  "Benefits," then "Workers Compensation," and scroll down to 
  "Workers' Compensation Cost Information."
  
  The data shows State payments, by department, for all open, 
  active claims.
  
  The State's FY 2001/2002 workers' compensation payments 
  totaled $429.6 million, or 3.9% of payroll.  This 
  represents an increase of $41.0 million (10.6%) over last 
  year's costs.
  
  The number of open claims increased to 34,875 on July 1, 
  2002, compared to 31,738 on July 1, 2001.  This is an 
  increase of 3,137 claims (9.88%).  This figure is 
  cumulative and includes all active claims, regardless of 
  the original date of injury.
  
  Costs increased over last year in all areas of workers' 
  compensation expenses except vocational rehabilitation 
  benefits and wage replacement benefits paid under Labor 
  Code Sections 4800 and 4800.5.
   
  PML 
  November 25, 2002
  Page 2
  
  
  
  Specific cost increases/decreases:
  
  Premiums 27.8%
  Service Fees 16.8%
  Temporary Disability Benefits 13.7%
  Medical Expenses 12.3%
  Industrial Disability Leave Benefits  9.9%
  Permanent Disability Benefits  7.8%
  Vocational Rehabilitation Benefits -1.6%
  Labor Code Section 4800, 4800.5 Benefits-13.2%
  
  If you have any questions, please contact Keith Mentzer at 
  (916) 445-9792.
  
  
  
  
  Terri Westbrook, Chief
  Benefits Division