Workers' Comp Benefits Decline

May 4, 2000
Compared to wages, workers' compensation benefits payments and costs have declined for six consecutive years.

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Workers'' compensation benefits payments and costs declined relative to wages in 1997 and 1998, according to a report by the National Academy of Social Insurance (NASI).

In 1998, total workers'' comp benefit payments (medical care and cash benefits) were $41.7 billion. Employers paid $52.1 billion in premiums or to self-insure. Those figures for 1997 were $40.6 billion for payments and $52 billion in costs. Though the 1998 figures are slightly higher, when adjusted for the growing size of the work force and the rising wages of workers, the benefits and costs actually declined for the sixth straight year.

As a share of payroll, benefits declined by 35 percent from 1992 to 1998, from 1.66 to 1.08 percent of payroll. Employer costs fell by 38 percent between 1993 and 1998, from 2.17 to 1.35 percent of payroll.

According to John F. Burton Jr., a Rutgers University dean who oversees the NASI report, the declining costs likely were due to "fewer accidents, improvements in the operation of workers'' compensation programs, the active management of medical care, more effective return-to-work programs and tightening of eligibility for workers'' compensation benefits."

The full report, "Workers'' Compensation: Benefits, Coverage and Costs, 1997-1998, New Estimates," is available on the NASI Web site at www.nasi.org.

by Stephen G. Minter

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

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