The Minnesota Department of Labor and Industry (DLI) released its annual report covering trends from 2003 to 2023, including claims, benefits, costs, vocational rehabilitation, and dispute resolution to describe the current status of workers’ comp in Minnesota, and to offer explanations where possible for recent developments.

In regard to claim frequency, in 2023 there were 3.5 total paid claims per 100 full-time-equivalent workers (FTEs), down 45% from 2003. Non-COVID claims were 3.4 per 100 FTEs.

The average claim cost in 2022 was $12,400. Indemnity has increased 5% since 2003, while medical costs per claim were down 12% since 2003. Overall, in 2023, medical costs made up 33.5% of program spend, while insurer expenses made up 32.7%, and indemnity other than vocational rehab made up 29.2%.

Total system costs in 2023 were $1.8 billion, or $0.91 per $100 payroll.

As for dispute resolutions, 6,684 disputes were filed in 2024, about 1,000 fewer than in 2023. Denial rates were:

• 16.6% for non-COVID claims, down from 17.4% from 2022
• 23% for all indemnity claims, down from 30% in 2022
• 0.3% for COVID-19 claims

The top medical service request in disputes were injections followed by second opinions, imaging, office visits, and physical therapy. Reimbursement issues mostly involved office visits and surgery.