Kentucky Workers’ Compensation System Included In WCRI CompScope Analysis

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A first-time look at workers’ compensation claims in Kentucky found that total costs per claim were typical among 18 states studied, the Workers Compensation Research Institute (WCRI) announced, and that costs per claim were stable between 2009 and 2014.

Sample chart from study.

We have been performing this study for many years in some states, but this is the first time we have released results for Kentucky.

A first-time look at workers’ compensation claims in Kentucky found that total costs per claim were typical among 18 states studied, the Workers Compensation Research Institute (WCRI) announced, and that costs per claim were stable between 2009 and 2014.

The WCRI study, CompScope™ Benchmarks for Kentucky, 16th Edition, found that indemnity costs per claim and benefit delivery expenses per claim were typical of all states studied. Temporary disability claims lasted on average three weeks longer than in the typical state that, like Kentucky, has a permanent partial disability (PPD) benefit system. Kentucky does not mandate payment of temporary partial benefits, which may lead to extended duration of temporary disability benefits, according to the study.

Longer-than-typical duration of claims was offset by a lower-than-typical percentage of claims with PPD/lump-sum payments, the study found. The average PPD/lump-sum payment per claim, however, was higher than the norm.

Medical costs per claim were below the 18-state median, reflecting Kentucky price regulations. The stable trend over time was similar to other states, according to the study.

Medical-legal expenses were among the highest of all states studied, both in their frequency and costs, the study said, while other benefit delivery expenses were typical, including medical cost containment and defense attorney payments.

“We have been performing this study for many years in some states,” said Ramona Tanabe, WCRI’s executive vice president and counsel. “This is the first time we have released results for Kentucky.”

Copies of this report can be ordered from the WCRI web site: http://www.wcrinet.org/studies/public/books/bmcscope_multi16_ky_book.html.

The Cambridge-based WCRI 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.

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Andrew Kenneally
Workers Compensation Research Institute
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Workers Compensation Research Institute - WCRI
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