Research and Statistics -- DLI statistics

Workers' compensation

Average indemnity and medical costs of insured claims, adjusted to SAWW
(2004 wage-levels), 1984-2003 [1] [2]

Description

Appendix

A. Indemnity claims

Year	Indemnity cost	Medical cost	Total cost
1984	$17,366	$7,049	$24,416
1985	18,338	7,835	26,173
1986	19,242	8,355	27,598
1987	19,281	8,833	28,114
1988	18,868	9,238	28,106
1989	20,207	10,487	30,694
1990	20,660	10,889	31,549
1991	17,995	10,090	28,085
1992	14,959	9,545	24,503
1993	12,666	9,327	21,993
1994	12,360	8,834	21,194
1995	11,563	9,149	20,712
1996	11,552	9,507	21,059
1997	11,234	9,750	20,984
1998	11,067	10,024	21,090
1999	12,614	11,301	23,915
2000	12,861	11,302	24,163
2001	14,650	13,061	27,711
2002	14,897	13,909	28,806
2003	14,679	15,420	30,099

B. Medical-only claims

Year	Medical cost	Total cost
1984	$362	$362
1985	375	375
1986	390	390
1987	424	424
1988	452	452
1989	496	496
1990	544	544
1991	593	593
1992	580	580
1993	552	552
1994	540	540
1995	541	541
1996	538	538
1997	545	545
1998	554	554
1999	574	574
2000	604	604
2001	653	653
2002	705	705
2003	725	725

C. All claims

Year	Indemnity cost	Medical cost	Total cost
1984	$4,843	$2,227	$7,070
1985	5,002	2,410	7,412
1986	5,188	2,537	7,725
1987	5,373	2,767	8,140
1988	5,191	2,870	8,061
1989	5,480	3,205	8,685
1990	5,670	3,383	9,054
1991	4,863	3,160	8,023
1992	3,794	2,854	6,647
1993	2,986	2,621	5,607
1994	2,714	2,362	5,076
1995	2,396	2,352	4,721
1996	2,311	2,333	4,644
1997	2,244	2,383	4,627
1998	2,188	2,426	4,614
1999	2,589	2,776	5,364
2000	2,690	2,842	5,531
2001	3,049	3,235	6,284
2002	3,151	3,498	6,649
2003	3,159	3,888	7,047

1. Data is from the Minnesota Workers' Compensation Insurers Association, 2006 Minnesota Ratemaking Report. Incurred losses, from insurer reports about policy experience, are developed to a fifth-report basis using the development factors in the ratemaking report. The figures include the voluntary market and Assigned Risk Plan, and exclude supplementary benefits and second-injury claims.

2. To standardize the cost of benefits over time, the numbers are adjusted for growth in the statewide average weekly wage (SAWW), from unemployment insurance data. The number for each year is adjusted to 2004 by multiplying it by the ratio of the 2004 SAWW to the SAWW for that year, using the SAWW reflecting wages-paid during the respective year. Details in Appendix.