A recent report by the National Academy of Social Insurance (NASI) reveals some very interesting trends concerning the payment of workers' compensation benefits in 2009 (the most recent year in which a complete set of data is available).

The report, entitled "Workers' Compensation: Benefits, Coverage and Costs, 2009," examined work comp benefits paid on the national and state level, as well as work comp benefits paid through federal programs.

Two of the most notable findings of the report include the following:

  • The number of workers in the U.S. covered by work comp insurance fell by 4.4 percent in 2009
  • Employer costs stemming from work comp benefits fell by 7.6 percent in 2009

According to the authors of the report, the rather rough economic conditions of the last few years played a significant role in these figures.

"As one might expect, when the Great Recession hit, employers paid less in workers' compensation costs because there were fewer workers to cover," said John F. Burton, the chairperson of the panel directing the NASI report.

Interestingly, the report also presents a rather uncertain picture of things here in the state of California.

Specifically, the report found the following:

  • The number of workers in California covered by work comp insurance fell by 5.7 percent in 2009
  • Employer costs stemming from work comp benefits fell by 1.6 percent in 2009
  • Work comp benefits used for medical treatment fell by 1.8 percent while work comp cash benefits fell by 1.4 percent

It is worth noting that the total amount of work comp benefits paid to injured workers actually increased slightly in 23 states - perhaps a reflection of benefits provided in 2009 but awarded years earlier.

Stay tuned for further updates from our San Diego workers' compensation firm ...

This post was for informational purposes only and is not to be construed as legal advice.

Related Resources:

Insurance Journal "Drop in workers' compensation costs reflects recession" Aug. 16, 2011

Los Angeles Business Journal "California workers' comp benefits decline" Aug. 16, 2011