DLI report says state workers’ comp trends remain stable

A new report from the Minnesota Department of Labor and Industry reveals that workers’ compensation claim rates and benefits paid in Minnesota continue to be stable or track downward, despite the “major system impact” stemming from COVID-19.

For the past three years, the report has tracked two sets of trends for the workers' compensation system, according to Minnesota DLI. One includes COVID-19 claims, and the other excludes those claims.

From 2002 to 2022, the total number of paid claims dropped by 45%, according to the 2024 Minnesota Workers’ Compensation System Report , released Tuesday. I ndemnity claims dipped by 3% and medical-only claims plummeted 56% during that time.

With the influx of COVID-19 indemnity claims, the state saw a 44% increase in the indemnity claim rate from 2019 to 2022. MN DLI said the increase “reversed the long-term downward trend in indemnity claim rate,” adding that the decline from 2002 to 2019 was 33%.

Other key findings include:

• From 2002 to 2022, as it relates to total payroll, indemnity benefits were down 41% and medical benefits were down 52%.



• In 2022, the “three largest components of workers' compensation system cost were medical benefits (33%), insurer expenses (31%) and indemnity benefits other than vocational rehabilitation (30%).”



• For non-COVID-19 claims, compared to 2002, the average time a worker received total disability benefits was 9% longer in 2022. Also between 2002 and 2022, the average duration of “temporary partial disability” fell 25% for non-COVID-19 claims.

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