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Cost Per Workers’ Compensation Claim Rising In Indiana As Payments for Medical Care Increase, Says New WCRI Study
Date:12/10/2012

Cambridge, MA (PRWEB) December 10, 2012

The average cost of a workers’ compensation claim in Indiana grew rapidly in recent years, mainly driven by the high price of medical care, according to a new study, Benchmarks for Indiana, CompScope™ 13th Edition, by the Workers Compensation Research Institute (WCRI).

“The study will help policymakers and other stakeholders understand how the Indiana workers’ compensation system measures up with other states and will serve as an invaluable tool in making system improvements,” said Ramona Tanabe, WCRI’s Deputy Director and Counsel.

The study found that medical payments were the major factor behind rising workers’ compensation claim costs, which grew 7 percent per year from 2005 to 2010. In spite of these increases, overall costs per workers’ compensation claim were 12 percent lower in Indiana compared with the typical state in the 16-state study.

Among the study’s other findings:

  •     Indemnity benefits per claim—payments to replace lost wages— were 40 percent lower than the median of the states in the study, due to faster return to work and less frequent and less costly permanent partial disability/lump-sum settlement payments.
  •     Higher medical prices (consistent with states with no price regulation) drove higher medical payments per claim—15 percent higher— of the 16 study states.
  •     The percentage of workers receiving their first indemnity payment within 21 days of injury was slightly lower in Indiana at 41% than the median study state at 45%. A regulatory provision that extends the required payment period to 29 days may be a reason behind this finding.

The study benchmarks the performance of the workers’ compensation
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