A study by the Washington-based National Academy of Social Insurance revealed that California’s workers’ compensation benefits have increased 13.9 percent to $8.9 billion in 2002, signaling the end of a decline relative to wages that has occurred over the past several years, says the Los Angeles Times. The number of workers covered by the state program rose 3.4 percent, as totoal wages paid rose 13.5 percent in 2000, resulting in a firm $1.49 for workers’ comp benefits for every $100 in wages. Benefits rose from $43.1 in 1999 to $46.1 billion in 2000 nationally. For every $100 in wages, the national average benefits decreased from $1.04 to $1.03, indicating the eighth decline in the national average for some period of time, with a peak in 1992 of $1.68.
The decline has been credited to a downward trend in benefits to strong wage growth, as well as a decrease in reported accidents, managed health care and workers’ comp reforms since the early and mid-1990s by the study’s authors. They also expect that increases in workers’ comp benefits may soon outnumber total wages. According to the president of the California Labor Federation, AFL-CIO, the benefit increase in California of 13.9 percent for 2000 went directly to pay increased medical costs. Additionally, the study found that nationally, employer costs relative to wages dropped slightly in 2000.
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