Workers Compensation Indemnity Payouts

WORKERS COMPENSATION

Workers compensation insurance provides for the cost of medical care and rehabilitation for injured workers. It also provides for lost wages and death benefits for the dependents of persons killed in work-related accidents. Workers compensation systems vary from state to state. There are two components to workers compensation claims costs: cash payments for lost time (which are usually linked to a state’s average weekly wage), known as indemnity costs, and payments for medical care.

WORKERS COMPENSATION BENEFITS, COVERAGE AND COSTS, 2011-2012

 

  2011 2012 Percent change
Covered workers (000) 125,833 127,904 1.6%
Covered wages ($ billions)  $6,049 $6,309 4.3
Workers compensation benefits paid ($ billions)  61.0 61.9 1.3
     Medical benefits  30.6 30.8 0.9
     Cash benefits  30.5 31.0 1.8
Employer costs for workers compensation ($ billions)  77.8 83.2 6.9

Source: Workers Compensation: Benefits, Coverage, and Costs, 2012, National Academy of Social Insurance.

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