Workers comp loss costs decreasing due to payroll changes: NCCI
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Workers compensation bureau loss costs are decreasing, mostly due to changes in payroll used to calculate premiums, along with a continued decline in injury claim frequency, according to a report released Tuesday by the National Council on Compensation Insurance.
Workers comp costs have been increasing recently at a slower pace than wage inflation, resulting in decreased loss costs, the report says. Additionally, injury claim frequency has been decreasing “over a long period,” it says.
“Workers compensation average claim costs generally increase,” the report states. “However, in more recent years, these costs have not been increasing at the same pace as wages. Many factors can influence average claim costs, including price of services, utilization of services, safety training programs, loss control measures and the mix of businesses.”
Workers comp medical fee schedules continue to keep costs down, and decreasing emergency room visits and in-patient admissions per claim, along with changes in dispensing patterns from brand name to generic drugs, all contribute toward the moderate growth rate of medical severity, the report states.
The NCCI says medical inflation continues to be a top concern in the workers comp industry, and it’s monitoring shifts in medical services and other factors to better understand how the COVID-19 pandemic may have recently affected comp costs.
