Workers' compensation costs per claim in Florida, which fell after 2003's system reforms, appear to have grown from 2005 to 2009, according to the CompScope Benchmarks for Floridasurvey by the Workers Compensation Research Institute.
The study shows that the average indemnity cost per claim, including payments for lost wages, loss of earning capacity or permanent impairment or disability, increased 3 percent per year after declines of more than 20 percent because of reforms related to permanent disability benefits.
A portion of the moderate growth in indemnity costs per claim stemmed from wage growth while another part was caused by the rise in lump-sum frequency and growth in the average lump-sum payment per claim. Florida medical costs per claim also continued to rise rapidly for most cases in 2009, which is the most recent study year. Among all paid claims and medical-only claims, the average medical cost per claim increased 7 percent and 10 percent in 2009.
Recommended For You
For Florida medical costs per claim, the amount rose 5-6 percent per year starting in 2005 after a year of stabilization caused by the fee schedule reforms. One of the 2005 primary growth drivers in medical costs per claim was price increase for chiropractors and physical and occupational therapists based on a fee schedule increase. Between 2006 and 2008, growth in the average payment per service for hospital outpatient services was a growth catalyst in medical costs per claim.
The study also finds that the frequency of defense attorney involvement steadily increased 1-2 percent from 2005 to 2009 per year. This growth is probably related to the rise in the frequency of claims with lump-sum settlements after 2005. In 2009, the average defense attorney payment per claim in Florida increased 12 percent in 2009.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
