Claims and Premiums Keep Dropping, Annual Report Shows

Thursday, April 19, 2018 | 0

Paid claims and premiums in Minnesota have dropped significantly in the last 20 years while benefits have risen slightly, according to the Minnesota Workers' Compensation System Report for 2016, released this week.

In 2016, the system paid four claims per 100 full-time employees, which is down 54% from 1996, the report said. Pure premium rates for 2018 also were down, 51% from 1996. The rates fell 18% just in the last two years.

Adjusting for wage growth, medical and indemnity benefits per insured claim rose sharply from 1996 to 2003, but more slowly since then. But relative to total payroll, indemnity benefits were down 40% from 1996 to 2016.

From 1996 through 2015, after adjusting for average wage growth, per paid indemnity
claim, total disability benefits rose 11%, with all of this increase occurring by
2001. Temporary partial disability benefits fell 20%, and permanent partial disability benefits fell 55%.

In 2016, on a current-payment basis, medical benefits accounted for an estimated 35% of total system cost, followed by insurer expenses, at 31%, and indemnity benefits other than vocational rehabilitation, at 29%.