Workers’ compensation benefits, which often grow with employment and earnings, increased in 2011 as the U.S. economy continued its recovery, according to a new report from the National Academy of Social Insurance (NASI).
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The increase in benefits includes a 4.5 percent rise in medical care spending to $29.9 billion and a 2.6 percent rise in wage replacement (cash) benefits to $30.3 billion.
When benefits and costs are measured relative to total covered wages, benefits remained unchanged, and costs to employers rose very modestly (to $1.27 per $100 of wages) after declining in the previous five years.
Workers’ Compensation Benefits, Coverage, and Costs, 2011 |
| Aggregate Amounts |
2011 |
Percent Change |
| Covered workers (in thousands) |
125,833 |
1.1% |
| Covered wages (in billions) |
$6,049 |
3.9% |
| Workers’ compensation benefits (in billions) |
$60.2 |
3.5% |
| Medical benefits
|
$29.9 |
4.5% |
| Cash benefits |
$30.3 |
2.6% |
| Employer costs (in billions) |
$77.1 |
7.1% |
| Amounts per $100 of covered wages |
2011 |
Dollar Change |
| Benefits paid |
$1.00 |
$0.00 |
| Medical benefits |
$0.49 |
$0.00 |
| Cash payments to workers |
$0.50 |
-$0.01 |
| Employers’ costs |
$1.27 |
$0.03 |
| Source: National Academy of Social Insurance estimates. |
The report shows changes in coverage, benefits, and employer costs for all 50 states and the District of Columbia. State-level changes in 2011 include:
- Coverage and wages increased in all 50 states and the District of Columbia.
- Total benefits paid to injured workers increased in 29 jurisdictions. However, benefits as a percent of total wages increased in only 17.
- Employers’ costs of workers’ compensation as a percent of total wages increased in 31 states, and remained unchanged in four.
- The share of benefits paid for medical care exceeded 50 percent in 33 states.
Source: Workers’ Compensation: Benefits, Coverage, and Costs, 2011