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Workers' compensation: coverage, benefits, and costs, 1990-91

W J Nelson

    Social Security Bulletin
    |January 1, 1993
    PubMed
    Summary

    Workers' compensation programs offer crucial wage and medical benefits for work-related injuries and illnesses. Recent decades show significant increases in benefits, employer costs, and covered employees.

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    Area of Science:

    • Occupational Health
    • Economics
    • Social Policy

    Background:

    • Workers' compensation programs provide financial protection for lost wages and medical expenses due to work-related injuries or illnesses.
    • These programs also offer survivor benefits in cases of work-related fatalities.
    • In 1991, substantial amounts were paid for medical and wage-loss compensation, funded by private carriers, state funds, or self-insuring companies.

    Purpose of the Study:

    • To examine recent trends in workers' compensation coverage.
    • To analyze changes in benefit levels and employer costs.
    • To identify factors influencing these changes in the workers' compensation system.

    Main Methods:

    • Analysis of national data on workers' compensation coverage, benefits, and employer costs.
    • Examination of trends over the past decade.
    • Assessment of changes in the number of covered employees and payroll.

    Main Results:

    • Workers' compensation benefits increased by 157 percent over the past decade.
    • Employer costs for workers' compensation rose by 143 percent during the same period.
    • The number of covered employees grew by 22 percent, with a 77 percent increase in covered payroll.

    Conclusions:

    • Workers' compensation systems have experienced substantial growth in benefits and costs.
    • The scope of coverage has expanded, reflecting changes in the workforce and economy.
    • Understanding these trends is vital for stakeholders in occupational health and safety economics.

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