SIBTF Costs Surge as Claims Skyrocket: The Subsequent Injuries Benefits Trust Fund (SIBTF) has expanded dramatically, raising concerns about rising costs and sustainability. Initially designed to assist workers whose disabilities were worsened by workplace injuries, the program has seen an explosion in claims and payouts. SIBTF benefits paid out have jumped from $115 million annually to over $600 million, with unresolved case liabilities exceeding $5 billion. This surge has contributed to increasing employer workers’ compensation assessments.
Why Are SIBTF Costs Growing?
A recent RAND report, commissioned by the California Department of Industrial Relations (DIR), highlights several factors behind the skyrocketing expenses:
🔹 Broader Eligibility & Common Conditions – Unlike other states, California does not limit qualifying pre-existing conditions, leading to more claims involving chronic conditions like arthritis, obesity, and diabetes.
🔹 Permanent Disability (PD) Calculation Changes – A 2020 court ruling (Todd v. SIBTF) made it easier to reach a 100% PD rating, significantly increasing benefit payouts.
🔹 Medical-Legal Report Explosion – SIBTF cases involve unregulated medical-legal processes, leading to excessive reports and inflated costs. RAND estimates that 1 in every 5 dollars paid by SIBTF goes to medical-legal expenses rather than injured workers.
What’s Next for SIBTF?
With the system ballooning out of control, policymakers face tough decisions about reforming eligibility, regulating medical-legal processes, and improving oversight. Employers and stakeholders must stay informed as California debates changes to ensure fairness while containing costs. SIBTF Costs Surge as Claims Skyrocket
➡️ Stay updated on SIBTF reforms at SIBTF.org.
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