The slow economic recovery is affecting workers’ compensation, which has been proven by a recent report released by the National Academy of Social Insurance (NASI). The report states that in 2010, benefits declined to $57.5 billion, which was a 2.7% drop from the previous year. This decrease was mostly due to a 2.1% drop in medical benefits for workers that had been injured. This ended up making employer costs the lowest they had been in 30 years.
The costs to employers are a percentage of payroll and 43 jurisdictions saw a decline. This decline is due to how slow the economic recovery has been progressing with many jurisdictions still seeing very high unemployment rates.
This report makes a first for the Academy because they actually released employers’ costs by state.
Most states reported a decrease in the number of covered workers but reported an increase in covered wages from 2009-2010. During the same time, the total benefit amount paid to injured workers increased in 25 jurisdictions and declined in 26. As a payroll share, benefits paid to injured workers dropped three cents to $.99 per $100 as a nation.
The medical benefits share for workers’ compensation increased a lot in the past 4 decades. During the 1970s, medical benefits accounted for 30% of the benefits received, whereas this figure increased to 50% in 2010. Experts believe this is due to the rising cost of healthcare in the country.
Have you been injured at work? We’re here to help you, experienced Mankato Workers’ Compensation Lawyers. Call us on: 507-779-7529 or email: info@katolaw.com to schedule a FREE consultation.
