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Workers' compensation program experience, 1981.

D N Price

    Social Security Bulletin
    |April 1, 1984
    PubMed
    Summary
    This summary is machine-generated.

    Workers' compensation saw slower growth in coverage and benefits in 1981 compared to previous years. Employer premium increases and cost-payroll ratios also declined significantly, marking a notable shift.

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    Area of Science:

    • Economics
    • Labor Studies
    • Public Policy

    Background:

    • Workers' compensation programs are crucial for employee protection and managing workplace injury costs.
    • Historical trends show significant fluctuations in program coverage, benefit payouts, and employer costs.
    • The Black Lung program has historically represented a substantial portion of workers' compensation benefits.

    Purpose of the Study:

    • To analyze the trends in workers' compensation coverage, benefits, and employer costs in 1981.
    • To compare the 1981 growth rates with those of 1980 and the 1970s.
    • To examine the changing proportion of Black Lung program benefits within the overall workers' compensation system.

    Main Methods:

    • Analysis of national data on workers' compensation program indicators.

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  • Comparative analysis of year-over-year growth rates for coverage, benefits, and premiums.
  • Examination of the cost-payroll ratio trends.
  • Tracking the proportion of Black Lung benefit payments over time.

    • Main Results:

    • Workers' compensation coverage and benefits increased in 1981, but at a slower rate than in 1980 and significantly slower than in the 1970s.
    • Employer premium payments saw a minimal increase of less than 3% in 1981, the lowest since 1958.
    • The cost-payroll ratio dropped by 12 points in 1981, a reversal from the rising trend of the 1970s.
    • The Black Lung program's share of total benefit payments decreased from over 20% in 1973 to approximately 12.5% in 1981.

    Conclusions:

    • The year 1981 marked a period of decelerated growth in the workers' compensation system.
    • Reduced premium increases and a declining cost-payroll ratio suggest a potential stabilization or decrease in the financial burden on employers.
    • The diminishing relative importance of the Black Lung program indicates shifts in the composition of workplace injury claims or benefit structures.