TORRANCE, Calif. – Jan. 26, 2016 – Keenan, the largest privately held insurance brokerage and consulting firm in California, and Milliman, one of the world’s largest independent actuarial consulting firms, have released their second annual “California Hospital Workers’ Compensation Benchmarking Report.” The report was designed by the Keenan HealthCare division and Milliman’s Property and Casualty Practice to provide industry-wide benchmarks for fundamental considerations so that informed decisions related to workers’ compensation and maintaining appropriate risk can be made.
“As thought leaders in the industry, Keenan HealthCare is pleased and very proud, for the second year in a row, to be able to provide California hospitals the only authoritative report benchmarking their workers’ compensation costs. It serves as an unequalled resource to assist these hospitals in making informed decisions on what type of program is best suited for them,” said Bill Poland, Property & Casualty Marketing Director of Keenan HealthCare.
The report provides an in-depth look at key factors including claim frequency and severity, impact of reforms, medical and indemnity costs, and allocated loss adjustment expense over the past 10 to 12 years. Also included is data on payroll and utilization, age, litigation status, and future medical claims.
General trends identified in the report include:
- Overall losses per $100 of payroll remained flat over the 10 years ending 2014, with severity of claims on the rise while claim frequency declined.
- Estimates of costs per indemnity claim for accidents occurring during 2014 have decreased approximately 10% from 2013.
- Projected 2015 loss cost per $100 of payroll was at $2.20.
“California’s workers’ compensation environment is complex and always changing, and there are many challenges that employers and hospitals must contend with,” said Richard Lord, Principal and Consulting Actuary with Milliman. “The information in this report can help both employers and hospitals make more informed decisions regarding workers’ compensation and can help them develop plans to improve their overall results.”
The report’s data and conclusions are based on a survey of 17 hospital systems or individual facilities in California comprising over 35 facilities in total and aggregate data on over 3,500 annual workers’ compensation claims. To facilitate data analysis on a consistent basis among all participants, the survey relied on payroll and utilization information obtained from the California Office of Statewide Health Planning and Development.
For information on Keenan insurance brokerage and consulting programs, visit www.keenan.com.
Founded in 1972, Keenan is a top-25 largest insurance consulting and brokerage firm in the U.S. and the largest independent broker in California. Keenan is dedicated to providing superior insurance products and services to schools, community colleges, healthcare organizations and municipalities for employee benefits, health benefit management services, workers’ compensation, risk management, and property and liability. With headquarters in Torrance, CA, Keenan has a staff of more than 700 insurance specialists and branch offices in Riverside, San Clemente, Oakland, San Jose, Rancho Cordova, Redwood City, Pleasanton and Eureka. For more information, call 800-654-8102 or 310-212-3344, email firstname.lastname@example.org or visit www.keenan.com.
Milliman is among the largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit www.milliman.com.