2024 NASI Report: Work Comp Benefits and Employer Costs

Rafael Gonzalez, Esq.

This is the National Academy of Social Insurance 26th annual report on workers’ compensation benefits, costs, and coverage. The report presents new data on state and federal workers’ compensation programs for 2021 and updated estimates for 2017-2020. The report can be found at https://www.nasi.org/wp-content/uploads/2024/02/2024-WC-Report-2021-Data-Final.pdf

As I have done for each annual report over the last 26 years, what follows is a verbatim review of analysis, statistics, information, and commentary provided within the 2024 report, examining the 2021 data.

Workers Compensation Paid Benefits and Employer Costs

In 2021, altogether workers’ compensation payers paid $60.0 billion in benefits, a 1.1 percent increase from the total paid in 2020. Of this amount, $32.9 billion (54.8%) were paid by private carriers, $8.5 billion (14.2%) were paid by state funds, $3.2 billion (5.4%) were paid by federal programs, and $15.4 billion (25.7%) were paid by self-insureds. While benefits increased only 1.1 percent in 2021, total employer costs were $96.0 billion, an increase of 4.4 percent from 2020. In 2021, costs for employers insured through private carriers was $57.1 billion (59.5% of total costs); costs for self-insured employers was $11.5 billion (12.0% of total costs); costs for employers insured through state funds was $19.3 billion (20.1% of total costs); and costs to the federal government was $8.1 billion (8.4% of total costs).

Workers Compensation Benefits Paid

Year???????????????????? Total Benefits Paid????????? Indemnity???????????? Medical

1987??????????????????? $27.3 billion?????????????????? 63.7%????????????????? 36.3%

1988??????????????????? $30.7 billion?????????????????? 62.5%????????????????? 37.5%

1989??????????????????? $34.3 billion?????????????????? 60.9%????????????????? 39.1%

1990??????????????????? $38.2 billion?????????????????? 60.3%????????????????? 39.7%

1991??????????????????? $42.2 billion?????????????????? 60.1%????????????????? 39.9%

1992??????????????????? $45.7 billion?????????????????? 58.2%????????????????? 41.8%

1993??????????????????? $45.3 billion?????????????????? 56.9%????????????????? 43.1%

1994??????????????????? $44.6 billion?????????????????? 60.5%????????????????? 39.5%

1995??????????????????? $43.4 billion?????????????????? 60.3%????????????????? 39.7%

1996??????????????????? $41.9 billion?????????????????? 60.1%????????????????? 39.9%

1997??????????????????? $41.1 billion?????????????????? 58.5%????????????????? 41.5%

1998??????????????????? $42.3 billion?????????????????? 57.7%????????????????? 42.3%

1999??????????????????? $46.3 billion?????????????????? 56.3%?????????????????43.3%

2000??????????????????? $47.7 billion?????????????????? 56.1%????????????????? 43.9%

2001??????????????????? $50.8 billion?????????????????? 54.5%????????????????? 45.5%

2002??????????????????? $52.3 billion?????????????????? 53.7%????????????????? 46.3%

2003??????????????????? $54.7 billion?????????????????? 53.0%????????????????? 47.0%

2004??????????????????? $56.2 billion?????????????????? 53.6%????????????????? 46.4%

2005??????????????????? $57.1 billion?????????????????? 53.8%????????????????? 46.2%

2006? ????????????????? $54.9 billion?????????????????? 52.3%????????????????? 47.7%

2007??????????????????? $56.4 billion?????????????????? 51.9%????????????????? 48.1%

2008??????????????????? $58.8 billion?????????????????? 50.7%????????????????? 49.3%

2009??????????????????? $58.5 billion?????????????????? 51.8%????????????????? 48.2%

2010??????????????????? $58.5 billion?????????????????? 50.9%????????????????? 49.1%

2011??????????????????? $61.4 billion?????????????????? 49.1%????????????????? 50.1%

2012??????????????????? $62.7 billion?????????????????? 50.1%????????????????? 49.9%

2013??????????????????? $63.4 billion?????????????????? 49.4%????????????????? 50.6%

2014??????????????????? $63.6 billion?????????????????? 49.0%????????????????? 51.0%

2015??????????????????? $62.8 billion?????????????????? 49.6%????????????????? 50.4%

2016??????????????????? $62.6 billion?????????????????? 49.8%????????????????? 50.2%

2017??????????????????? $62.5 billion?????????????????? 50.2%????????????????? 49.8%

2018??????????????????? $62.9 billion?????????????????? 50.2%????????????????? 49.8%

2019??????????????????? $63.1 billion?????????????????? 50.1%????????????????? 49.9%

2020??????????????????? $59.4 billion?????????????????? 52.6%????????????????? 47.4%

2021??????????????????? $60.0 billion?????????????????? 52.5%????????????????? 47.5%

Top 10 states with Largest Workers Compensation Benefits Paid

State??????????????????? Total ????????? Private Carriers????? State Funds? Self-Insureds

1. California????????? $12.4 bill???? $7.2 bill ?????????????? $1.1 bill?????? $4.1 bill

2. New York????????? $5.5 bill?????? $2.4 bill??????????????? $1.2 bill?????? $1.9 bill

3. Florida????????????? $3.5 bill?????? $2.5 bill??????????????? None?????????? $1.0 bill

4. Washington??????$2.8 bill?????? None??????????????????? $2.2 bill?????? $0.6 bill

5. Pennsylvania????$2.7 bill?????? $1.9 bill??????????????? $0.1 bill?????? $0.7 bill

6. New Jersey??????$2.4 bill?????? $1.8 bill??????????????? None? ???????? $0.6 bill

7. Illinois????????????? $2.0 bill?????? $1.5 bill??????????????? None?????????? $0.5 bill

8. Ohio??????? ???????? $1.6 bill?????? None?????????? ???????? $1.3 bill?????? $0.3 bill

9. Georgia??? ????????$1.4 bill?????? $1.1 bill??????????????? None?????????? $0.3 bill

10. Texas????????????? $1.3 bill?????? $0.7 bill??????????????? $0.4 bill?????? $0.2 bill

Top 10 States Indemnity and Medical Breakdown

State??????????????????? Total ????????? Cash Benefits??????? Medical Benefits

1. California????????? $12.4 bill???? $6.1 bill ?????????????? $6.3 bill

2. New York?????????$5.5 bill?????? $3.7 bill??????????????? $1.8 bill

3. Florida????????????? $3.5 bill?????? $1.3 bill??????????????? $2.2 bill

4. Washington?????$2.8 bill?????? $2.0 bill???????????????$0.8 bill

5. Pennsylvania???$2.7 bill?????? $1.5 bill??????????????? $1.2 bill

6. New Jersey?????$2.4 bill?????? $1.3 bill??????????????? $1.1 bill

7. Illinois????????????? $2.0 bill?????? $1.1 bill??????????????? $0.9 bill

8. Ohio??????? ???????? $1.6 bill?????? $1.1 bill??????????????? $0.5 bill

9. Georgia??? ???????$1.4 bill?????? $0.7 bill??????????????? $0.7 bill

10. Texas?????????????$1.3 bill?????? $0.6 bill??????????????? $0.7 bill

Workers Compensation Employer Costs

Year???????????????????? Total Employer Costs?????? Costs per Covered Employee

1989??????????????????? $47.9 billion?????????????????? $462

1990??????????????????? $53.1 billion?????????????????? $504

1991??????????????????? $55.2 billion?????????????????? $532

1992??????????????????? $57.4 billion?????????????????? $550

1993??????????????????? $60.8 billion?????????????????? $573

1994??????????????????? $60.5 billion?????????????????? $553

1995??????????????????? $57.1 billion?????????????????? $506

1996??????????????????? $53.9 billion?????????????????? $482

1997??????????????????? $54.4 billion?????????????????? $446

1998??????????????????? $55.0 billion?????????????????? $437

1999??????????????????? $56.4 billion?????????????????? $430

2000??????????????????? $60.7 billion?????????????????? $478

2001??????????????????? $67.4 billion?????????????????? $532

2002??????????????????? $74.1 billion?????????????????? $589

2003??????????????????? $82.3 billion?????????????????? $659

2004??????????????????? $88.6 billion?????????????????? $704

2005??????????????????? $92.5 billion?????????????????? $722

2006? ????????????????? $90.0 billion?????????????????? $691

2007??????????????????? $89.0 billion?????????????????? $676

2008??????????????????? $82.9 billion?????????????????? $635

2009??????????????????? $76.1 billion?????????????????? $609

2010??????????????????? $74.9 billion?????????????????? $602

2011??????????????????? $81.2 billion?????????????????? $645

2012??????????????????? $87.1 billion?????????????????? $681

2013??????????????????? $91.8 billion?????????????????? $705

2014??????????????????? $96.6 billion?????????????????? $726

2015??????????????????? $99.2 billion?????????????????? $729

2016??????????????????? $100.2 billion???????????????? $724

2017??????????????????? $100.8 billion???????????????? $718

2018??????????????????? $101.4 billion???????????????? $711

2019??????????????????? $100.7 billion???????????????? $697

2020???????????????????$91.9 billion?????????????????? $677

2021??????????????????? $96.0 billion??????????????????$684

10 Highest Workers Compensation Employer Costs per $100 of Payroll

State??????????????????? ???????? Cost per $100 of Payroll

1. Wyoming??????????????????? $1.83

2. Hawaii?????????????????????? $1.62

3. Montana???????????????????? $1.48

4. Idaho?????????????? ???????? $1.42

5. South Carolina?????????? $1.41

6. Louisiana?????????????????? $1.36

7. California????????? ???????? $1.34

8. Vermont???????????????????? $1.31

9. Alaska?????????????????????? $1.30

10. Wisconsin???????????????$1.26

10. New Jersey?????????????$1.26

10 Lowest Workers Compensation Employer Costs per $100 of Payroll

State???????????????????????????? Cost per $100 of Payroll

1. District of Columbia???? $0.35

2. Texas?????????????? ???????? $0.41

3. Virginia????????????????????? $0.56

5. Michigan??????????????????? $0.57

6. Indiana????????????????????? $0.60

7. Massachusetts??????????? $0.61

8. Utah????????????????????????? $0.63

9. Arkansas??????????????????? $0.63

10. Ohio??????????????????????? $0.65

About Rafael Gonzalez, Esq.

Rafael earned his Bachelor of Science degree from the University of Florida, and his Jurisprudence Doctorate degree from the Florida State University. He has 40 years’ experience in the legal and insurance industries. He is currently a partner in Cattie & Gonzalez, PLLC , a national law firm serving clients in all 50 states and US territories, focused on Medicare and Medicaid secondary payer law and compliance in liability, no-fault, and workers compensation claims and litigated cases. Rafael is active on social media, with over 100,000 followers on Facebook , Instagram , LinkedIn , Twitter , and Youtube . For more information, you may visit him at www.cattielaw.com , reach him at [email protected] , or speak with him at 813.967.7598 .