The Workers’ Compensation report of the non-profit National Academy for Social Insurance (NASI) revealed that workers’ compensation benefits across the US decreased for the second year in a row in 2014, with total benefits reaching $62.3 billion. This reflects a minimal decrease of 0.3% from 2013.
The downturn immediately follows a growth trend between 2010 and 2012.
Meanwhile, as benefits decreased, employer costs increased over the medium term, reaching $1.35 per $100 paid in 2014, although it was static from 2013.
“Workers’ compensation costs to employers were $91.8 billion in 2014, an increase of 26.1 percent in the period 2010-2014,” the report said.
“Medical payments increased by 7.2% to $31.4 billion, and cash benefits increased by 4.3% to $30.9 billion over the period 2010-2014. Controlling for changes in covered wages, total benefits decreased by $0.10 and medical payments decreased by $0.04,” the study further said.
In addition, “Historically, cash benefits have been a larger share of workers’ compensation benefits than medical payments to injured workers. Since 1995, however, cash benefits per $100 of covered wages have declined, while medical payments have increased or remained constant. As a result, workers’ compensation benefits have been almost equally divided between medical payments and cash benefits since 2010.”
The NASI report, called
Workers’ Compensation: Benefits, Coverage and Costs examined 2014 data from the jurisdiction of 50 states and the District of Columbia.
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