The National Council on Compensation Insurance (NCCI) published a new Medical Inflation Insights report, which provides a quarterly overview of the latest insights and analysis into what is driving changes in prices and how these changes may or may not impact workers compensation.

The NCCI found that both general and medical inflation remain stable, with only modest effects from tariffs. Headline inflation rose 3% year over year in September, still above the Federal Reserve’s 2% target but well below 2022 levels.

The Workers Compensation Weighted Medical Price Index (WCWMI) increased 2.5% through August 2025, largely due to slower hospital price growth. This slowdown is expected to be temporary.

So far, the tariffs that have been announced will apply only to branded and patented drugs, with exemptions for companies manufacturing in the United States. Because most prescriptions are generic and several manufacturers are expanding domestic production, tariffs are not expected to significantly drive up drug costs.