Costs Per Workers' Comp Claim Declined in Massachussetts as State Recovered from Impact of the Recession

The cost per workers' compensation claim in Massachusetts decreased six percent in 2010, the largest decline among all states reviewed in a new study, CompScope™ Benchmarks for Massachusetts, 13th Edition, by the Workers Compensation Research Institute (WCRI).

The decrease in total costs per claim in Massachusetts reflects, in part, the state's recovery from the Great Recession. By contrast, total costs per workers' compensation claim rose 10 percent per year, on average, during the recession period of 2007 to 2009.

“This 16-state study can help policymakers and other stakeholders in the system break down cost components and identify cost drivers in the Massachusetts workers' compensation system during the early post-recession period and see how costs there compare with other study states,” said Ramona Tanabe, WCRI's Deputy Director and Counsel.

The study noted that indemnity benefits per claim, which represent the largest component of overall workers' compensation payments in the state, decreased by 11 percent between 2009 and 2010. The study examined claims involving workplace injuries which resulted in more than seven days of time away from work.

The study pointed out that because the rise in unemployment in Massachusetts was less severe than the national trend, injured workers may have had more opportunities to return to work with their pre-injury employer or find a job with a new employer than in states with higher unemployment rates.

For more information about this study or how to purchase it, click on the following link: http://www.wcrinet.org/result/bmcscope_multi13_MA_result.html.

ABOUT WCRI:

The Workers Compensation Research Institute (WCRI) is an independent, not-for-profit research organization based in Cambridge, MA. WCRI was founded in 1983 and is recognized as a leader in providing high-quality, objective information about public policy issues involving workers' compensation systems. 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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