Two Sides to Workers Comp

The saying that there are two sides to every story really resonates in workers compensation and the latest research brief from the National Council on Compensation Insurance (NCCI). On the one hand workers, employers and their insurers can take comfort from the fact that the decline in claim frequency for workers compensation injuries continued into 2006 and continues to be widespread. For example, NCCI notes that all geographic regions of the country experienced significant declines over the last five years and despite some variation the decline in claim frequency occurred in all major industry groups across almost all occupations. But while workers comp claim frequency is down, NCCI cautions that indemnity and medical severities continue to rise. Indemnity severity increased by an estimated 5.5 percent in 2006, while the estimated rise in medical costs for 2006 is 7.5 percent. Medical price inflation and the utilization of medical services (including prescription drugs) are significant drivers of this trend, according to NCCI. What do you think? Check out further I.I.I. facts and stats on workers comp.  

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