Two-Thirds of Claim Denials Are Reversed, Lockton Study Finds

Workers’ comp claim denial rates have increased by nearly 20% over the last five years, according to a new white paper from Lockton Cos., even though two-thirds of the denied claims are determined to be payable within a year. The change in status of a denied claim comes at a cost to the payer, Lockton’s data indicate. The average net incurred value of a claim that was accepted and paid out was $10,153. In contrast, if a claim was initially denied but converted to a paid claim within a year, the average cost at 60 months of development was $15,694 — a 55% incre...