The rates for workers’ compensation insurance have been steadily rising in recent years. According to the National Academy of Social Insurance (NASI), businesses are choosing to go for cheaper options for their employees.
John F. Burton, emeritus from Rutgers and Cornell University, stated that the NASI analysis (2009-2013) showed that workers’ comp benefits, as a part of employee benefit packages, have declined across 39 states. Burton feels this occurs for two reasons.
One reason Burton states is a decline in injuries occurring in the workplace. Another involves changes occurring at the state level—many of which are making workers’ benefits qualifications harder to meet.
Burton further states, “These state laws include more stringent compensation rules, the reduction of coverage for certain medical diagnoses and new legal requirements that make it more difficult for workers to succeed in their claims for benefits.”
According the numbers, the average amount workers receive from workers’ compensation equals about 98 cents/$100 of their wages. In instances where an employer paid more (upwards of $1.37/$100 wages), the cost increased. This was seen across 27 states.
The three states with the highest costs are Alaska ($2.58), Montana ($2.24) and Oklahoma ($2.24) [all out of $100] and the three lowest are District of Columbia (47 cents per $100), Massachusetts (74 cents) and Texas (80 cents per $100). Texas employers, however, are not required by law to provide workers’ compensation coverage.