Improving the California workers’ compensation system through research, information, education and representation

The California Workers’ Compensation Institute is a private, nonprofit organization of insurers licensed to write workers' compensation in California, as well as public and private self-insured employers, who serve as associate members. CWCI’s primary function is to generate reliable, objective data that can be used to identify and monitor systemwide trends, assist members in assessing their own operations, and to analyze key issues of interest to the workers’ compensation community and public policymakers. Towards that end, the Institute also produces a wide variety of research publications, provides information and technical training to help industry professionals stay abreast of changes, and serves as a forum where members can consider systemwide issues and reach consensus on practical solutions.

ANNOUNCEMENTS

Summary of NAIC Report on WC Insurer Profitability, 2001-2010	No Change in Calif. WC Medical Mileage Rate for 2012 Travel	2012 Assessment Rates: WC Administration Revolving Fund, Uninsured Employers, Subsequent Injuries, Occupational Safety & Health, Labor Enforcement & Compliance, and WC Anti-Fraud Funds	Medical Benefit Delivery in Calif. Workers' Comp: Changes in Network Utilization and Reimbursement, AY 2004-2010
National Assn of Insurance Commissioners data show that California workers' comp insurers had a 5.2% return on net worth in 2010, up a little over half a percentage point from 2009, but less than 1/3 of the record 16.4% return noted at the 2006 peak. The California market has seen wild swings in the past 10 years, and NAIC reports California workers' comp insurers' return on net worth for the decade averaged 5.6% vs. a 6.1% return for workers' comp insurers nationwide.	The IRS has announced that for the first time in years, there will be no change in the business mileage rate at the beginning of the year, so the rate that claims administrators pay injured workers for travel related to treatment or evaluation of their injuries will remain at 55.5 cent per mile for travel on or after 1/1/12.	DIR has issued the 2012 assessments that workers' comp insurers are required to collect from policyholders and self-insured employers must pay directly to the state to fund the Division of Workers' Compensation (DWC) budget and five related programs established by state lawmakers.	Use of medical networks in California workers' compensation continues to grow, with new CWCI data showing that in AY 2009, network providers accounted for three-quarters of 1st year physician-based treatment and nearly 2/3 of the total paid for such services. The full study is in the Research section.