The National Academy of Social Insurance has just released its latest report on workers’ compensation. This is required reading for any serious student of work comp; it’s stuffed with insights just waiting for you.
Here’s a few.
Note – COVID’s impact on 2020 results are significant especially re medical costs and the relation of medical to other work comp financial metrics.
- From 2016 – 2020, medical benefits paid (per $100 of covered wages) dropped by almost 25%.
- This followed a 17 point drop over the previous five years …
- this massive decline is (likely) due primarily to lower claim frequency
- Medical costs…
- totaled $27.7 billion in 2020, $2.5 billion less than 2019
- accounted for 53% of benefits in 2020, down from 56% in 2019
- a reminder to those who predicted massive increases in medical costs due to COVID; a much deeper understanding of healthcare delivery, cost drivers, and sources of cost data would be quite helpful.
- CWCI’s analysis indicated the Golden State accounted for a fifth of all benefits paid (Bulletin available at no cost to CWCI members)
- Overall, employers’ work comp payroll-adjusted costs dropped almost 9 percent from 2019 to 2020
The report can be downloaded for free.