The Minnesota Department of Labor and Industry published their 2026 workers’ compensation system report, which presents data from 2024 to the present to report on several aspects of the Minnesota workers’ comp system.
The report focuses on:
- Claims, benefits, and costs
- Vocational rehabilitation
- Disputes and dispute resolution
While Minnesota continues to experience fewer claims and lower medical costs, longer disability durations and a modest increase in claim denials may indicate ongoing claim complexity and return-to-work challenges that could affect payer costs and claim outcome.
The average duration of total disability benefits was 33% longer in 2024 than in 2004, while total disability benefits per indemnity claim increased 37%. The non-COVID claim denial rate increased to 17.4% in 2024, up from 17.0% in 2023.
Minnesota's workers' compensation claim rate reached its lowest level on record in 2024, with paid claims down 42% since 2004. Furthermore, medical benefits per $100 of payroll decreased 54% and indemnity benefits decreased 41% between 2004 and 2024.
In 2024, the largest system cost components were:
- Insurer expenses – 33%
- Medical benefits – 32%
- Indemnity benefits other than vocational rehabilitation – 30%
