The Workers’ Compensation Insurance Rating Bureau of California reported that claims for COVID-19 in the state decreased significantly in February 2022 to about 2% of reported indemnity claims.
In December 2020, nearly one-third of all indemnity claims were attributed to COVID-19, the WCIRB said. In spring 2021 the proportion of COVID-19 claims began to increase again, with the emergence of new variants. This surge peaked in January 2022, with one-third of reported indemnity claims stemming from COVID-19.
Since then, the share of COVID-19 indemnity claims has fluctuated between 1% and 5%.
The WCIRB also said COVID-19 claim severities dropped significantly.
The average cost of a COVID-19 indemnity claim was $20,858 in accident year 2020, with $11,295 in wage replacement benefits and $9,563 in medical care; in 2021 that figure dropped to $16,394, with $8,621 in wage replacement benefits and $7,773 in medical care; and in 2022 the average fell sharply to $3,828, including $2,245 in indemnity benefits and $1,583 in medical benefits.
About 40% of COVID-19 claims in 2020 had no medical cost component. That proportion increased to 50% in 2021 and 66% in 2022. Most indemnity-only COVID-19 claims are small and close quickly, the WCIRB said.
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