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California workers’ comp medical costs rose 5% in 2025, WCIRB says
Medical costs were 52% of total California workers’ comp loss payments in 2025, with Southern California driving an 8% rise in paid per claim.
California’s workers’ compensation system saw medical service costs paid per claim rise 5% in 2025, following a 10% increase in 2024, according to a report from the Workers’ Compensation Insurance Rating Bureau of California, or WCIRB.
The WCIRB said the 2025 jump reflected a 4% increase in average prices paid per transaction and a 1% increase in utilization. Medical costs accounted for 52% of total loss payments in the California workers’ compensation system in 2025.
Southern California continued to drive statewide trends, with medical paid per claim there up 8% in 2025, largely due to higher prices across service types. In Northern California, paid per claim was stable because declining average prices offset higher utilization growth.
The bureau also pointed to steep gains in specific categories, including Medical-Legal services and Medical Equipment and Other Services. Medical-Legal costs made up 17% of total medical payments in 2025 and have risen 47% cumulatively from 2021 through 2025 since the state’s new Medical-Legal Fee Schedule took effect, while Medical Equipment and Other Services rose 55% cumulatively from 2020 through 2025, WCIRB said.