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Increased Benefit Generosity and the Impact on Workers' Compensation Claiming Behavior: An Interrupted Time Series
Tyler J Lane1, Shannon E Gray, Luke Sheehan
1Insurance, Work and Health Group, School of Public Health and Preventive Medicine, Monash University, Melbourne, VIC, Australia.
Objective:
To measure the effect of legislation in Victoria, Australia that increased workers' compensation benefits, including a raised wage replacement cap for higher earners, on claiming behaviors.
Methods:
Controlled interrupted time series of monthly claiming volumes and median disability duration, focusing on overall effects, impact among higher earners, and by condition type.
Results:
Overall claiming increased 12%, driven by back/neck (18%), and other musculoskeletal conditions (14%). Overall disability duration did not change, though increased 27% among back/neck conditions. Among higher earners, findings on claiming were mixed, while disability duration increased 33%, driven by back/neck musculoskeletal (MSK) conditions (23%). Findings for mental health conditions were mixed.
Conclusions:
The effect of benefit generosity on workers' compensation claiming and disability duration varied by earnings and condition. Effects were strongest among musculoskeletal conditions.
