Total paid workers compensation claims in Minnesota fell 45% in 2022 from 20 years prior, with medical-only claims significantly dropping 56% and indemnity claims dipping by 3%, according to a 2024 Minnesota Workers’ Compensation System Report released Tuesday.
The report shows that the total cost of the state’s workers comp system was around $1.67 billion in 2022, and that the total system cost per $100 of payroll follows a multiyear cycle in line with nationwide insurance pricing.
In 2022, the three largest components of Minnesota workers comp costs were medical benefits at 33%, insurer expenses at 31% and indemnity benefits other than vocational rehabilitation at 30%.
The report also highlights the impact of COVID-19 on the workers comp system, noting that the pandemic led to an influx of comp claims that caused a 44% increase in the indemnity claim rate between 2019 and 2022. This reversed a downward trend in indemnity payments between 2002 and 2019.
For injury claims not related to COVID-19, the average period of total disability benefits was 9% longer in 2022 than in 2002, and the average duration of temporary partial disability decreased by 25% for non-COVID-19 claims during that same period, the report states.