The New Mexico Workers’ Compensation Administration published their 2024 Annual Report, highlighting system performance and claim trends.
According to the report, medical-only claims have fluctuated significantly since 2018, starting at 13,860, then dropping to 9,881 by 2021, but they have since risen to 11,826 in 2023. These fluctuations were attributed to the COVID-19 pandemic, which resulted in a reduction of less serious, medical-only claims. Meanwhile, indemnity claim rates have remained stable since 2018.
Both medical severity and indemnity severity increased in New Mexico, surpassing national averages. Lost-time medical severity rose 8.7% between 2021 and 2022, compared to a 3.5% national increase. Lost-time severity for indemnity claims surged by 20.5% in 2022, significantly higher than the national average increase of 7.2%, driven largely by rising wages.
Claim frequency has continued to trend down since 2019, which saw 40,311 total claims, dropping to 31,174 claims in 2022, with a minor increase in 2023 to 33,842. The report found that average per-claim costs peaked at $8,817 in 2022 before a slight drop to $8,730 in 2023.
Additionally, medical spend continues to dominate workers’ comp expenditures. In 2023, medical costs amounted to approximately $158.3 million. Indemnity expenditure remained in second place, with a slight increase from $111.1 million to $115.9 million. Legal costs remained in a distant third place, experiencing a slight reduction to $13.1 million.
Strains and tears were the leading type of injury in 2023, representing 31% of claims. Fracture was the second most common injury type, representing 13%, followed by sprain or tear at 12%.
Despite fluctuations, the report notes that the state maintains its mid-range ranking for premium rates as ranked in the Oregon Workers’ Compensation Premium Rate Ranking study.
At over 75 pages, the report contains a significant amount of additional information, including regulatory developments, organizational updates, and recent court decisions.
