Total workers’ compensation claims costs have increased an average of 6% between 2022 and 2025 in the median study state, according to the 2026 edition of the Workers Compensation Research Institute’s (WCRI’s) CompScope Benchmarks. The reports compare the performance of state workers’ compensation systems in 18 different U.S. states. The focus covers overall medical payments, income benefits, use of benefits, duration of temporary disability, benefit delivery expenses (BDE), timeliness of payments, and other metrics, as well as how these metrics have changed between 2020 and 2025.
Major findings from the benchmark reports include an increase in medical payments per claim; a rise in indemnity benefits per claim, as longer durations of temporary disability (TD) placed pressure on benefits and wages for injured workers continued to grow; steady BDE growth per claim, reflecting increases in medical cost containment expenses and litigation expenses; and widespread cost growth across states, with most study states experiencing rising total costs per claim and increases in most cost components, states WCRI.
California Comp Benchmarks
Total costs per claim in California for claims with more than seven days of lost time grew 6% in 2025, which was similar to the growth over the previous two years, according to the report. The increase was driven mainly by indemnity benefits, medical payments, and BDE per claim; however, both the growth itself and the causes were normal for California when compared with other states studied, the report notes.
“Total costs per claim for all paid claims in California were higher than in most study states for claims evaluated in 2025 with an average of 36 months of experience,” states the report. “That result was mainly driven by a higher percentage of claims with more than seven days of lost time. The average cost per claim for claims with more than seven days of lost time in California was typical of the study states, which reflects offsetting factors.”
When compared to the other study states, California’s indemnity benefits per claim with more than seven days of lost time were typical. However, California had the longest duration of TD benefits and more frequent PPD/lump-sum settlement payments compared with other study states with permanent partial disability (PPD) benefit systems; meanwhile, the average PPD/lump-sum settlement payment amount was typical. Medical payments per claim were typical for all paid claims and lower for claims with more than seven days of lost time in California. Lastly, BDE per claim in California were among the highest of the states studied.
Florida Comp Benchmarks
“Total costs per claim in Florida grew 5% in 2025 for claims with more than seven days of lost time at 12 months of experience,” according to the report. This cost growth, which was similar to the increase over the prior two years (2022 to 2024), “was mainly driven by increases in indemnity benefits per claim, which primarily resulted from wage growth.
Indemnity benefits grew 4% per year from 2023 to 2025 in Florida, the report states. Wages of workers with injuries grew moderately as the labor market began to soften; duration of temporary disability and the frequency of and payments for lump-sum settlements were stable. Medical payments per claim grew 4% in 2025, following little change in the prior three years.
“A potential driver of the increase in the latest study year is the expected price growth for nonhospital professional services due to the fee schedule increase effective January 2025. WCRI research found that after the 2025 fee schedule increase, Florida’s nonhospital professional fee schedule rates changed from being among the lowest nationwide to being typical of states in 2025,” the report explains.
Florida’s typical indemnity benefits per claim “reflect a combination of typical duration of TD benefits, more frequent PPD/lump-sum settlement payments, and a lower average PPD/lump-sum payment per claim,” states the report. Although medical cost containment expenses per claim were typical for Florida, the state had higher attorney involvement, resulting in typical BDE per claim, according to the report.
Pennsylvania Comp Benchmarks
In Pennsylvania, the total costs per claim rose 9% last year, following rapid increases in the prior two years and small to moderate decreases from 2020 to 2022. These were among the highest of the study states for 2025 claims at 36 months of experience, with indemnity benefits, medical payments, and BDE per claim being the primary drivers for growth from 2022 to 2025. The higher indemnity payments were the main driver, with the primary contributing factors being highest average weekly temporary disability benefit rate, longer duration of temporary disability, and larger settlements. “Recent changes in indemnity benefits per claim in Pennsylvania and other study states likely reflect several factors, including changing economic and labor market conditions, changes in claims composition, and changes in the delivery of medical treatment,” the report states.
Indemnity benefits per claim increased 9% in 2025, continuing a growth trend since 2022. Medical payments per claim grew 11%, with growth in prices paid for professional services being a significant contributing factor, the report notes. “These price increases reflect, in part, the impact of high-cost claims, along with annual increases to the state fee schedule based on changes to the statewide average weekly wage, which have been larger in recent years.”
Minnesota Comp Benchmarks
Total costs per claim in Minnesota for claims with more than seven days of lost time at 12 months of experience were stable in 2025, following rapid growth from 2022 to 2024, according to the report. This made the total costs per claim, as well as the key components, lower than average among the study states. The lower indemnity payments, specifically, “reflect a combination of typical duration of TD benefits, less frequent PPD/lump-sum settlement payments, and a higher-average PPD/lump-sum settlement payment per claim.”
Medical payments per claim were stable in 2025, following “an increase driven by higher prices and utilization of medical services in the prior two years,” states the report. “One factor contributing to the stability was little change in prices for nonhospital professional services; another potential factor was the expected decrease in hospital outpatient payments due to the fee schedule decrease beginning in October 2023.” Both indemnity benefits per claim and BDE per claim were stable as well in 2025, the former driven by slower wage growth and the latter driven by stable medical cost containment (MCC) expenses per claim and fewer claims with litigation-related expenses.
About the Author:
Angela Sabarese is associate editor at CLM. angela.sabarese@theclm.org