The average cost of COVID-19 claims increased “significantly” in the last six months of 2021, according to a report by San Diego-based Mitchell International Inc.
As of December, the average indemnity cost for a COVID-19 claim increased 40% when compared with Mitchell’s analysis of data in June 2021, about $3,478 per claim, according to the report, which showed that over average medical costs went up 76% to about $10,162 per claim. The percentage of COVID-19 related claims with only indemnity costs has remained steady since the start of the pandemic.
Though COVID-19 claim costs are up significantly, Mitchell said in the report released Wednesday that it “believes a small number of large dollar claims have inflated the average.”
Only 12% of COVID-19 related claims had more than $4,000 in indemnity paid, and 4% had more than $10,000 in indemnity paid. When the top 4% of claims are excluded, the average indemnity cost per claim drops to $1,452, according to the report.
Business Insurance is a sister publication of WorkCompCentral. More stories are here.
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