The risks of providing medical care and the costs of protecting against those risks alone, including the protection of employees from injury or illness in the delivery of that care, require hospitals to look closely at questions related to taking fully insured, partially self-funded, or self-insured positions. Workers’ compensation laws in California make the choice increasingly complex. This report provides industry-wide benchmarks in terms of the fundamentals from which informed decisions related to workers’ compensation and maintaining appropriate risk can be made: claim frequency and severity, medical and indemnity costs, and allocated loss adjustment expense.

Keenan and Milliman have prepared this report in collaboration, in order to help assist in the development of improved workers' compensation management practices.