Call or email us anytime
(805) 484-0333
Search Guide
Today is Thursday, April 25, 2024 -

Industry Insights

Paduda: The State of Workers' Comp

  • National
  • -  0 shares

The National Academy of Social Insurance has just released its latest report on workers’ compensation. This is required reading for any serious student of work comp; it’s stuffed with insights just waiting for you.

Joe Paduda

Joe Paduda

Here are a few. Note: COVID’s impact on 2020 results is significant, especially regarding medical costs and the relation of medical to other work comp financial metrics.

  • From 2016-2020, medical benefits paid (per $100 of covered wages) dropped by almost 25%.
  • This followed a 17-point drop over the previous five years.
  • The massive decline is (likely) due primarily to lower claim frequency.
  • Medical costs:
    • Totaled $27.7 billion in 2020, $2.5 billion less than in 2019.
    • Accounted for 53% of benefits in 2020, down from 56% in 2019.
    • Are a reminder to those who predicted massive increases in medical costs due to COVID. A much deeper understanding of health care delivery, cost drivers and sources of cost data would be quite helpful.
  • The California Workers' Compensation Institute's analysis indicated that the Golden State accounted for a fifth of all benefits paid (bulletin available at no cost to CWCI members).
  • Overall, employers’ work comp payroll-adjusted costs dropped almost 9% from 2019 to 2020.

The NASI report can be downloaded for free.

Joseph Paduda is co-owner of CompPharma, a consulting firm focused on improving pharmacy programs in workers’ compensation. This column is republished with his permission from his Managed Care Matters blog.

No Comments

Log in to post a comment

Close


Do not post libelous remarks. You are solely responsible for the postings you input. By posting here you agree to hold harmless and indemnify WorkCompCentral for any damages and actions your post may cause.

Advertisements

Upcoming Events

  • May 5-8, 2024

    Risk World

    Amplify Your Impact There’s no limit to what you can achieve when you join the global risk managem …

  • May 13-15, 2024

    NCCI's Annual Insights Symposi

    Join us May 13–15, 2024, for NCCI's Annual Insights Symposium (AIS) 2024, the industry’s premier e …

  • May 13-14, 2024

    CSIA Announces the 2024 Annual

    The Board of Managers is excited to announce that the CSIA 2024 Annual Meeting and Educational Con …

Workers' Compensation Events

Social Media Links


WorkCompCentral
c/o Business Insurance Holdings, Inc.
PO Box 1010
Greenwich, CT 06836
(805) 484-0333