- 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.
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: Mstack@ReduceYourWorkersComp.com.
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.
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