The National Council on Compensation Insurance (NCCI) published a report on mega claims – claims with losses above $2 million.

Mega claims represent less than 0.1% of total workers’ compensation (WC) claims but account for over 2% of total loss dollars, in excess of $1 billion each year. According to the report, mega claims are becoming more common, particularly in construction, relative to both premium and indemnity claims.

While there are fewer lower back and sprain injuries among mega claims, motor vehicle accidents – though comprising only 5% of indemnity claims – account for 33% of claims exceeding $10 million.

Factors contributing to rising mega claim costs include advances in medical care, rehabilitation technology (e.g., robotics, virtual reality), increasing home health costs, extended recovery times, and inflation in non-fee-schedule services.

In addition to the report, NCC also has a webinar recording with further information.