Waltham, MA, April 28, 2025―Total costs per workers’ compensation claim rose between 2 and 14 percent annually from 2021 to 2023 across 18 states, according to a new set of studies from the Workers Compensation Research Institute (WCRI).

“Total cost per claim is a widely used measure for policymakers and system stakeholders to gauge how their system is performing compared to other states. It combines three components—indemnity benefits for lost wages, medical payments, and benefit delivery expenses per claim,” said Sebastian Negrusa, vice president of research at WCRI. “While it’s a key metric, it’s just one of many measures that these studies track to provide a comprehensive view of system performance.”

The increase across the board in total costs per claim reflects changes in access to medical services and labor market conditions since the early pandemic years, particularly the recent rise in short-tenure workers as a share of claims. Although all states showed an upward trend in total costs per claim, the measure masks important nuances:

• Delaware: Total costs per claim increased 7 percent per year in Delaware from 2021 to 2023, primarily driven by rapid growth in wages and temporary disability duration.
• Florida: Wage growth in Florida accelerated in 2022 and then moderated in 2023, cooling the increases in indemnity benefits and resulting in growth of 4.5 percent per year in total costs per claim.
• Minnesota: Total costs per claim in Minnesota grew 10 percent per year from 2021 to 2023, mainly driven by increases in wages, duration of temporary disability, and medical payments per claim.
• New Jersey: Costs per claim in New Jersey increased about 8 percent annually from 2021 to 2023, largely driven by wage growth, especially for new hires and short-tenure workers.
• Virginia: The 7.4 percent average growth in Virginia total costs per claim since 2021 was driven by increasing indemnity benefits and benefit delivery expenses per claim, but partially offset by declining medical payments.

The studies, CompScope™ Benchmarks, 2025 Edition, provide ongoing annual monitoring of how indemnity benefits, medical payments, and benefit delivery expenses in 18 states compare and how they have changed over time. The 18 states in the study are Arkansas, California, Delaware, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, North Carolina, Pennsylvania, Texas, Virginia, and Wisconsin. Individual reports are available for every state except Arkansas, Iowa, Kentucky, and Texas. The studies cover claims through March 2024, focusing on non-COVID-19 claims, and track how pandemic-related disruptions and labor market shifts affected claims from 2019 to 2023.

For more information on these studies or to download copies, visit www.wcrinet.org.

About WCRI

The Workers Compensation Research Institute (WCRI) is an independent, not-for-profit research organization based in Waltham, MA. Organized in late 1983, the Institute does not take positions on the issues it researches; rather, it provides information obtained through studies and data collection efforts, which conform to recognized scientific methods. Objectivity is further ensured through rigorous, unbiased peer review procedures. WCRI's diverse membership includes employers; insurers; government entities; managed care companies; health care providers; insurance regulators; labor organizations; and state administrative agencies in the U.S., Canada, Australia, and New Zealand.

Return to Press Releases listing