Florida workers’ Comp Costs Driven by Wage Growth: WCRI Study
WALTHAM, MA — May 9, 2024 — A recent study by the Workers Compensation Research Institute (WCRI) has revealed a significant trend: wage growth is the primary factor behind rising workers’ compensation costs in Florida. The research, covering 2022 and 2023, highlights the impact of increasing wages, contrasting with the stability of medical payments during the same period. Expert analysis from WCRI provides in-depth insights into this evolving landscape, helping to explain the changes. Further research can be found in the CompScope™ Benchmarks for Florida, 2025 Edition.
Florida Workers’ Comp Costs Driven by Wage Growth: WCRI Study
WALTHAM, MA—A new study by the Workers Compensation Research Institute (WCRI) reveals that wage growth was the primary driver behind changes in florida’s overall costs per workers’ compensation claim in 2022 and 2023. This trend contrasts with the stability observed in medical payments per claim during the 2020-2023 period, which followed a decrease in 2020 largely attributed to reduced utilization of medical services due to the COVID-19 pandemic.
Key Findings: A Closer Look
- Wage Growth impact: The WCRI study emphasizes that rising wages considerably influenced Florida’s total costs per claim in recent years.
- Medical Payment Stability: Medical payments per claim remained relatively stable from 2020 to 2023, following an initial drop in 2020.
- National Ranking: Florida’s workers’ compensation system ranked in the middle among the study states regarding medical payments, indemnity benefits, and benefit delivery expenses per claim.
- Medical Payment Components: Florida features the lowest prices for nonhospital care but the highest prices for hospital outpatient services among the states studied.
Did you know? Florida’s unique combination of low nonhospital care costs and high hospital outpatient costs creates a complex dynamic in its workers’ compensation medical payments.
Expert Insight
Sebastian negrusa,vice president of research for WCRI,explained the importance of thes findings:
With stability in medical payments,wage growth in recent years has been the most influential factor on changes in Florida’s total costs per claim.Sebastian Negrusa, Vice President of Research, WCRI
negrusa further elaborated that the state’s experience primarily reflects the tight labour market during the economic recovery from the peak of the COVID-19 pandemic.
Thorough Analysis
CompScope™ Benchmarks for Florida,2025 Edition offers an in-depth examination of recent trends in indemnity benefits,medical payments,and benefit delivery expenses per claim. The study benchmarks Florida against 17 other states, providing a comparative outlook on its workers’ compensation system. The analysis includes claims data through March 2024, focusing on non-COVID-19 cases and assessing the effects of pandemic-related disruptions and labor market shifts from 2019 to 2023.
Pro Tip: For a deeper understanding of Florida’s workers’ compensation landscape, review the full CompScope™ Benchmarks for Florida, 2025 Edition. It provides detailed data and comparisons that can inform policy and practice.
Frequently Asked Questions (FAQ)
About WCRI
The Workers Compensation research Institute (WCRI),established in 1983,is an autonomous,non-profit research organization based in Waltham,MA. WCRI conducts studies and collects data using recognized scientific methods, ensuring objectivity through rigorous peer review. Its membership includes a diverse range of stakeholders, such as employers, insurers, governmental entities, managed care companies, health care providers, labor organizations, and state administrative agencies across the U.S., Canada, Australia, and New Zealand.
