Back to NewsWaltham, MA, April 28, 2026 – New research from the Workers Compensation Research Institute (WCRI), based on data from 18 study states, found that total workers’ compensation claim costs grew by an average of 6 percent per year from 2022 to 2025 in the median study state.
“The increase reflects sustained growth in the last few years across all major components of a claim, including medical payments, indemnity benefits, and benefit delivery expenses,” said Sebastian Negrusa, vice president of research at WCRI. “Workers’ compensation costs were fairly flat through 2022, but in the last few years, costs began to rise again, driven by increasing wages, higher medical prices, longer disability duration, and rising costs to administer claims.”
Key findings from the studies include:
- Medical payments per claim increased, primarily by price growth for medical services rather than changes in utilization, with high‑cost claims a key driver of growth in some states.
- Indemnity benefits per claim continued to rise, as longer durations of temporary disability placed upward pressure on benefits; wages for injured workers continued to grow but at a slower pace in more recent years.
- Benefit delivery expenses per claim grew steadily, reflecting increases in medical cost containment expenses and litigation expenses.
- Cost growth was widespread across states, with most study states experiencing rising total costs per claim and increases in most cost components.
The findings are drawn from CompScope™ Benchmarks, 2026 Edition, a series of studies covering 18 states that monitor the changes in workers’ compensation claim costs and their components. The studies examine claims with more than seven days of lost time, evaluated at 12 months of experience through 2025. The study states are Arkansas, California, Delaware, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, North Carolina, Pennsylvania, Texas, Virginia, and Wisconsin.
All state studies included in this edition are available free to WCRI members and for a fee to nonmembers. Click here for more information or to download copies of the studies in this edition.
About WCRI
The Workers Compensation Research Institute (WCRI), based in Waltham, MA, is an independent, not‑for‑profit research organization founded in 1983. WCRI provides objective information through studies and data collection that follow recognized scientific methods and rigorous peer review. The Institute does not make recommendations or take positions on the issues it researches, ensuring neutrality and credibility. Funding for WCRI’s research comes from its diverse membership, which includes employers, insurers, government agencies, managed care companies, health care providers, regulators, labor organizations, and state, federal, and international agencies.
