Workers’ Compensation Policy Review

Summary of the Contents – November/December 2007

             The National Academy of Social Insurance (NASI) provides the most comprehensive data on the U.S. workers’ compensation program, since the information includes all states as well as payments from all types of insurers,  namely private carriers, state and federal funds, and self-insuring employers. In “Workers’ Compensation Benefits and Costs in 2005,” John Burton analyzes some of the NASI’s latest data.  Total benefits (cash plus medical) paid to workers as a percent of payroll declined to 1.06 percent of payroll in 2005.  The last time this measure of benefits was lower was in 1983.  The decline in total benefits in 2005 reflected reductions in payments for both cash and medical benefits.  Costs to employers also declined in 2005 to 1.70 percent of payroll, the lowest figure in several years.

              David Torrey recently published an article examining compromise settlements in state workers’ compensation programs.  Compromise settlements, often referred to as compromise and release agreements, usually involve a compromise about the amount of benefits to be paid for a claim; the payment of the compromised amount in a lump sum; and the release of the employer from further liability.  Torrey, a Workers’ Compensation Judge in Pennsylvania , drew on his own experience and on extensive information from all states to prepare the definitive treatment of compromise settlements, which was published in the Widener Law Review.  He prepared a shorter article, “Compromise Settlements Under State Workers’ Compensation Acts: Law, Policy, Practice, and Ten Years of the Pennsylvania Experience (An Abridgement)” for the Workers’ Compensation Policy Review, which reflects his skepticism about the increasing reliance on compromise settlements in many states.

 Information on the Workers’ Compensation Policy Review

             The Workers’ Compensation Policy Review is published six times a year.  Requests for a sample copy or for subscription information can be sent to WCPR, 56 Primrose Circle , Princeton , NJ 08540 -9416; by FAX to 732-274-0678; by e-mail to JBWCR@aol.com; or electronically by visiting the website: www.workerscompesources.com.