Workers’ Comp Payments Drop Five Percent in Four Years
The study, published by the National Academy of Social Insurance (NASI) earlier this year, looked at workers’ comp data through 2013. It found that workers’ comp benefits as a share of payroll for injured workers had dropped five percent since 2009. Interestingly, employers’ costs went up five percent over the same period. So, why the disparity in costs and payouts? NASI suggests three possible reasons:- Growing workforce. As the economy strengthens and more people return to work, employers have to cover more workers’ injuries. Workers’ compensation insurance is expensive, so as employment numbers rise, so do the costs of providing workers’ comp.
- Lobbying for employer-friendly laws. Since 2003, more than half of all states nationwide have revised their workers’ compensation laws to make them more favorable to employers and their insurance companies. The most common changes have included reducing coverage for certain medical conditions and making it more difficult for employees to file successful workers’ comp claims.
- Healthcare is getting more expensive. Healthcare costs have ballooned in recent years. With work-related injuries leading to higher medical bills, the percentage of employees’ costs covered by workers’ comp is getting smaller and smaller.
