Frequency of Workers Compensation Claims Decline While the Severity Increases

According to Insurance Business America, over the past ten years the number of workers’ compensation claims is decreasing, but the severity of the injuries reported is increasing. Milliman and Keenan Healthcare analyzed workers’ compensation data and compiled a report showing frequency, severity, and medical and indemnity costs. They considered how reforms may affect the numbers as well. One of the main findings was that losses per $100 of payroll was stable between 2004 and 2014, but during roughly the same time period, the severity of claims increased by approximately 5.5 percent annually. There are ongoing efforts to not only reduce the number of claims, but also the severity.

Additionally, the report showed that from 2013 to 2014, estimated costs per indemnity claim decreased by about 10 percent. In fact, the study showed that younger workers tend to spend more in medical care as compared to other costs, while older workers have larger indemnity losses with about 20 to 25 percent of claims ending up in litigation. Employees between the ages of 36 to 55 approximated more than 50 percent of the indemnity claims paid. Data also showed that the severity of indemnity claims increases with age, and the likelihood of an incident resulting in an indemnity payment rises as well.

In order to remedy the frequency and severity of claims, there is an ongoing effort to improve workplace safety. For example, Workers Compensation reported that the Occupational Safety and Health Administration published a final rule on the requirements for personal protective equipment, which takes effect on April 25, 2016. The new rules dictate that more modern and improved eye and face protection should be used in the fields of longshoring, construction, marine and shipyard industries, and other general industries. Multiple outdated devices, as old as 1968 versions, were deleted and replaced with current acceptable standards.

If you or a loved one has been injured on the job, a skillful workers’ compensation attorney can better guide you on how best to file claims. An attorney can help protect your rights and help preserve your coverage. The Law Offices of McIntyre, Donohue, Accardi, Salmonson, & Riordan, LLP handles workers’ compensation claims throughout the five boroughs of New York City, including Manhattan, Brooklyn, Queens, and the Bronx, in addition to both Nassau and Suffolk Counties on Long Island. Call (866) 557-7500 for a consultation.

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