Waltham, MA, May 22, 2025 – Workers’ compensation costs per claim in Minnesota rose about 10 percent annually from 2021 to 2023, following stability during the first two years of the pandemic, according to a recent report from the Workers Compensation Research Institute (WCRI). Rising wages, longer duration of temporary disability, and increased medical payments per claim were the main drivers of this recent cost growth.

“Minnesota is not alone in seeing growth in overall costs per claim from 2021 to 2023,” said Sebastian Negrusa, vice president of research at WCRI. “Nearly all study states experienced cost growth since 2021, after cost decreases or stability in the prior two years. Changes in the availability of medical services and labor market conditions during the early COVID-19 pandemic and the more recent recovery period were the main factors behind this general trend.”

The following are some other findings from the study:

• Total costs per claim in Minnesota were lower than typical among the study states for claims with more than seven days of lost time and 36 months of experience.
• Benefit delivery expenses per claim increased in 2023, driven by growth in both expenses for managing medical costs and litigation-related expenses.

CompScope™ Benchmarks for Minnesota, 2025 Edition provides a comprehensive analysis of recent trends in indemnity benefits, medical payments, and benefit delivery expenses per claim. It also compares Minnesota’s workers’ compensation system with 17 other states on these key metrics. The study covers claims through March 2024, focusing on non-COVID-19 claims and examining the effects of pandemic-related disruptions and labor market shifts from 2019 to 2023.

The report was authored by Rebecca Yang.

ABOUT WCRI

The Workers Compensation Research Institute (WCRI) is an independent, not-for-profit research organization based in Waltham, MA. Organized in late 1983, the Institute does not take positions on the issues it researches; rather, it provides information obtained through studies and data collection efforts, which conform to recognized scientific methods. Objectivity is further ensured through rigorous, unbiased peer review procedures. WCRI's diverse membership includes employers; insurers; governmental entities; managed care companies; health care providers; insurance regulators; labor organizations; and state administrative agencies in the U.S., Canada, Australia, and New Zealand.

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