Minnesota On The Ball, Reduces Workers Comp Claims 43 Percent

Minnesota’s Department of Labor and Industry is reporting that the number of paid workers compensation claims in the state dropped 43 percent relative to the number of employees from 1997 to 2010. The annual report on the state's workers comp system underscores the fact that Minnesota workplaces have become safer for employees and comparatively less costly for employers, according to Labor Commissioner Ken Peterson. [WCx]

Following a national trend, the number of claims in Minnesota has been falling since the mid-1990s. In Minnesota, the claim rate dipped from 8.7 per 100 full-time employees in 1997 to 4.9 claims per 100 employees in 2010.

Minnesota law mandates that all employers acquire workers comp insurance or become self-insured. As the expense in training employees has risen, employers have zeroed in on making workplaces safer to protect their investment, according to Peterson. This is in addition to their moral obligation to protect their workers.[WCx]

Among the major findings from the report are:

The 2010 total workers comp system cost was $1.25 per $100 of payroll, the lowest since 1997.
Because of the falling claim rate, total benefits, including medical, cash and rehabilitation, fell 6 percent relative to payroll between 1997 and 2010.
Medical care accounts for the largest share of total system cost, 35 percent; next, insurance expenses, 31 percent; then cash benefits, 30 percent.
The percentage of claims with disputes rose from 15.5 percent to 21.2 percent from 1997 to 2010, a 37-percent increase.
The proportion of claimants receiving vocational rehabilitation services increased from 1997 to 2010. This may contribute to the findings of other studies that injured workers in Minnesota get back to work sooner than in most other states.

The purpose of the report is to describe the current status and direction of workers comp in Minnesota and to offer explanations, where possible, for recent developments. It is available online at www.dli.mn.gov/RS/WcSystemReport.asp. Copies of the report may also be obtained by calling (651) 284-5030 or toll-free 1-800-DIAL-DLI (1-800-342-5354).

More on Minnesota's WC Laws and Regulations can be found here in our WC state by state guide .

Author Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. Contact: [email protected].

WORKERS COMP MANAGEMENT MANUAL: www.WCManual.com
MODIFIED DUTY CALCULATOR: www.LowerWC.com/transitional-duty-cost-calculator.php

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.