Categories: Human Resources, Policy & Regulation, Strategy & Industry Insights,
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Severity Increasing In Medical and Indemnity Claims

In terms of workers’ compensation, severity measures the average cost of medical and indemnity expenses per active lost time claim. The Bureau of Workers’ Compensation has reported that the average medical expense per active lost time claim has increased from $28,114 as of March 31, 2009 to $39,237 as of December 31, 2012. During this same period the average indemnity expense per active lost time claim has increased from $43,305 to $59,334 and medical expenses on medical only claims have increased from $1,004 to $1,140.

Across this same time frame the new State Insurance Fund claims filed has ultimately seen a decrease. In March 2009 new claims filed were 143,590, which declined to 118,309 in March 2010. A slight increase in new claims filed ending March 2011 was 120,106, which has decreased to 113,387 filed ending December 2012.

Although the total number of claims reported continue to decrease the overall costs have increased.

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