The Workers' Compensation Research Institute conducted a study recently of 18 states that found the highest total costs per claim of workers' compensation. The study found that the state of Louisiana has the highest total costs per claim of the 18 states studied. The study was called the CompScope Benchmark for Louisiana, 18th Edition.
The study found that there was a 4 percent to 10 percent increase in the cost of claims in Louisiana per year since 2012. This was for claim maturities of 12 to 48 months. There were increases in all three areas of a workers' compensation claim: expenses for benefit delivery, indemnity benefits and medical payments.
The study discovered that the annual growth rate of 4.4 percent was higher than the median growth rate of 2.9 percent for the other states when the maturity for the claim was 12 months.
From 2011 to 2014, the increase was attributed to growth in medical costs and indemnity. For claims during this period with 36 months, the growth came in at 37 and 40 percent, respectively.
The study analyzed workers' compensation claims that had experience through the year 2017 for injuries suffered before and up to 2016. At certain times, longer time periods were used in an effort to establish historical reference points for the study.
Workers' compensation is an important benefit that employees can be paid from their employers. It is an insurance policy that protects workers when they are injured on the job and need help paying the bills while out of work. Make sure you have all of the proper documentation in order when filing a claim.
Source: Property Casualty 360, "WCRI reveals state with highest total costs per workers' comp claim," June 04, 2018