Workers’ Compensation Costs Per Claim Moderating In Pennsylvania After Years of Growth, New Study Reports

The study will help policymakers and other stakeholders understand how the Pennsylvania workers’ compensation system measures up with other states and serves as an invaluable tool in making system improvements.

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The study also examines how system features in Pennsylvania have affected cost components, which differentiate Pennsylvania from the other study states.

Cambridge, MA (PRWEB) November 14, 2013

The costs per workers’ compensation claim in Pennsylvania are moderating, following years of steady growth in previous years, according to a new study by the Workers Compensation Research Institute (WCRI).

The report, Benchmarks for Pennsylvania, CompScope™14th Edition, said total costs per workers’ compensation claim grew 3.4 percent per year between 2009 and 2011, after 7.6 percent per year growth in the three previous years.

“The study will help policymakers and other stakeholders understand how the Pennsylvania workers’ compensation system measures up with other states and serves as an invaluable tool in making system improvements,” said Ramona Tanabe, WCRI’s deputy director and counsel. “The study also examines how system features in Pennsylvania have affected cost components, which differentiate Pennsylvania from the other study states."

The moderation in growth was seen across all cost components, such as medical payments, wage replacement benefits, and litigation expenses.

Among other major findings:

  •     The costs of wage replacement, called indemnity benefits, were higher than typical of the 16 states in the WCRI study, driven by longer duration of temporary disability benefits and larger lump-sum settlements.
  •     Litigation expenses were higher in Pennsylvania relative to other states, possibly the result of system features and processes.
  •     The costs of medical payments for the treatment of injured workers rose at rates similar to most study states, reflecting the generally stable trend in prices paid for professional services.

Click on the following link to purchase this study: http://www.wcrinet.org/studies/public/books/BMcscope_multi14_PA_book.html.

The Cambridge-based WCRI is an independent, non-partisan research center that is recognized as a leader in providing high-quality, objective information about public policy issues involving workers' compensation systems.

ABOUT WCRI:

The Workers Compensation Research Institute (WCRI) is an independent, not-for-profit research organization based in Cambridge, MA. Since 1983, WCRI has been a catalyst for significant improvements in workers' compensation systems around the world with its objective, credible, and high-quality research. WCRI's members include employers; insurers; governmental entities; managed care companies; health care providers; insurance regulators; state labor organizations; and state administrative agencies in the U.S., Canada, Australia, and New Zealand.


Contact

  • Andrew Kenneally
    Workers Compensation Research Institute
    +1 (617) 661-9274 Ext: 257
    Email