After declining in the wake of the recession, workers’ compensation benefits paid to injured workers and costs borne by employers increased in 2011 as the U.S. economy continued to recover, according to a new report by the National Academy of Social Insurance (NASI).
Total benefits rose by 3.5 percent to $60.2 billion. The benefits include a 4.5 percent rise in medical care spending to $29.9 billion and a 2.6 percent rise in wage replacement benefits to $30.3 billion. Total costs to employers rose by 7.1 percent to $77.1 billion.
"Workers’ compensation often grows with the growth in employment and earnings,” said Marjorie Baldwin, chair of NASI’s Workers’ Compensation Data Panel and Professor of Economics in the W.P. Carey School of Business at Arizona State University. When benefits and costs are measured relative to total covered wages, then benefits remained unchanged, and costs to employers rose very modestly (to $1.27 per $100 of wages) after declining in the previous five years.
[Click here to see the rest of this post]Total benefits rose by 3.5 percent to $60.2 billion. The benefits include a 4.5 percent rise in medical care spending to $29.9 billion and a 2.6 percent rise in wage replacement benefits to $30.3 billion. Total costs to employers rose by 7.1 percent to $77.1 billion.
"Workers’ compensation often grows with the growth in employment and earnings,” said Marjorie Baldwin, chair of NASI’s Workers’ Compensation Data Panel and Professor of Economics in the W.P. Carey School of Business at Arizona State University. When benefits and costs are measured relative to total covered wages, then 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 | ||
| Covered workers (in thousands) | ||
| Covered wages (in billions) | ||
| Workers' compensation benefits (in billions) | ||
| Cash benefits | $30.3 | 2.6% |
| Employer costs (in billions) | $77.1 | 7.1% |
| Amounts per $100 of covered wages | ||
| Cash payments to workers | ||
| Source: National... | ||
