In the Workers’ Compensation Research Institute’s (WCRI) “CompScope Benchmarks for Louisiana, 18^th Edition”, researchers found that of the states studied, total costs per workers’ claim were the highest in Louisiana.

The report looks at data from 18 different states and found that average total costs per claim rose between 4 and 10 percent per year since 2012, at claim maturities from 12-48 months. Increases occurred in all three major cost components of comp claims- medical payments, indemnity benefits and benefit-delivery expenses.

“The 4.4 percent annual growth rate in Louisiana from 2012 to 2016 for claims at 12 months of experience was faster than the rate in the median state at 2.9 percent per year,” said Ramona Tanabe, WCRI’s executive vice president and counsel.

Tanabe also said that total costs per claim with more than seven days of lost time were not only higher in Louisiana, but growing faster than other states in the study.

Higher and growing hospital outpatient payments per claim were a big driver of higher-than-typical medical payments per claim in the state. Benefit delivery expenses were among the highest of the states studied, notably for payments made to defense attorneys. The duration of temporary disability accounted for part of LA’s trend in indemnity benefits per claim, increasing about one week since 2011 at all claim maturities. Duration was 9-16 weeks longer than in other states with wage-loss benefit systems. Lump-sum settlements were also an important factor in indemnity costs per claim and cost growth.

Check out the press release here and more from WCRI here.