The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) released Medical Service Cost Trends Through 2025, examining how medical service price and utilization, reimbursement structures and claim characteristics geographic variations are influencing costs across California’s workers’ comp system.

According to the report, medical service costs increased moderately in 2025, with several emerging trends influencing costs across the system, such as accelerated growth in certain services not subject to fee schedule reimbursement limits, increasing costs associated with cumulative trauma (CT) claims, and significant regional differences in medical spending patterns.

Medical service costs increased 5% in 2025, reflecting a 4% rise in average payments and a 1% increase in utilization.

Medical-Legal services and Medical Equipment and Other Services were the largest contributors to medical cost growth, with CT claims playing a significant role in both categories. One key note is that Medical Equipment and Other Services were frequently not subject to fee schedules, as cost growth of services not subject to fee schedule caps has accelerated in recent years, driven largely by higher utilization.

Southern California continued to drive statewide medical cost trends, with medical costs per claim increasing 8% in 2025, driven largely by higher average prices across service type.

The WCRIB will host a webinar to discuss these findings on September 23rd at 10:00 AM PST