Economic factors raise concerns
- Growing inflation has the workers’ compensation market nervous, according to a new report by the NCCI.
- The average physician-paid cost per claim grew from 2012 to 2021 at about 1.5% per year.
- Annual average physician payments by region varied modestly, increasing between 1.3% and 1.8%, with the Midwest and Northeast seeing the largest and smallest growth.
- Prices for physician services increased, which was the primary driver of growth in costs across regions.
Understanding workers’ comp’s 90-day rule
- The workers’ compensation 90-day rule does not mean the same thing in every state.
- In Pennsylvania, the 90-day rule specifies that employers can post a list of “panel physicians” in an obvious place that workers are easily able to see.
- The state also can mandate that injured workers initially seek treatment from one of these doctors.
- Other state workers’ compensation regulations impose many requirements, including mandates that you report injuries in a timely manner.
Demographics changing industry
- The Bureau of Labor reports there were 2.6 million nonfatal workplace injuries and illnesses among private industry employers in 2021, a decrease of 1.8% from 2020.
- Several private industry sectors actually reported an increase in cases, such as retail trade (15.6%) and transportation and warehousing (23%).
- Since 2011, the proportion of employees aged 55 and older has increased, while employees in the 35-54 age range have decreased.
- Younger workers aged 16-19 suffer higher rates of contact with objects and equipment, and injuries involving upper and lower extremities, lacerations, cuts, and punctures.
Back injuries and workers’ comp
- A back injury could lead to significant workers’ comp fees.
- The average settlement comes in between $20,000 and $25,000 for workers’ comp back injury claims, according to a recent survey.
- Data from the OSHA estimates back injury claims cost an average of $40,000 to $80,000 including medical bills, wage loss benefits, and more.
- Average workers’ comp settlements were valued at $37,000 for low back injuries and $33,000 for claims involving upper back injuries.