Report Shows Decline in Workplace Injuries, Increase in Costs

Report Shows Decline in Workplace Injuries, Increase in Costs

The number of workplace injuries has declined over the past decade, although the costs associated with them are increasing, according to an analysis of the past 10 years of workers’ compensation claims filed with The Travelers Companies.

Travelers’ 2025 Injury Impact Report compared workers’ compensation data from the five years leading up to the COVID-19 pandemic with the following five years. The report found 1.2 million workers’ compensation claims received during the past five years, down from 1.4 million from 2015 through 2019.

The report found that employees in their first year on the job accounted for about 36% of injuries and 34% of overall claim costs during the last five years. This is an increase from the prior five years, when 34% of injuries and 32% of overall claim costs were attributed to new employees.

Although the number of claims decreased, the average time away from work for a workplace injury reached an average of 80 workdays per injury from 2020 to 2025 — an increase of more than seven days when compared with the previous five-year period. Injured employees aged 60 and above were out of work due to workplace injuries for nearly 97 days, almost 17 days more than the overall average and an increase of 14 days from pre-pandemic years.

The report also found increases in the number of employees 50 years old or more. During the past five years, employees aged 50 or older made up 41% of the injured employee population, and those 60 and above represented 16%. This is up from 39% and 13%, respectively, when compared with data from 2015 through 2019. This trend is significant because older employees — while typically injured less frequently than their younger counterparts — tend to require longer recovery times and have more costly claims.

Additional findings from the 2025 Injury Impact Report can be found here.

Texas To Replace Insurance Maintenance Tax with Surcharge

Texas will amend both its Texas Insurance Code and its Labor Code to change the funding mechanism for regulating and overseeing the state’s workers’ compensation program. The changes are intended to generate more revenue for the state to administer its workers’ compensation system while also protecting Texas-based insurers from retaliatory taxes faced when writing policies in other states.

The changes are contained in SB 1455, which was adopted during the recently concluded Regular Session of the Texas Legislature. The new law takes effect on January 1, 2026. The legislation replaces the state’s existing workers compensation maintenance tax system with a surcharge that includes an increase in the maximum combined assessment rate to 2.7% of gross premiums up from 0.6%.

Reclassifying maintenance tax payments as surcharges protects Texas-based insurers from retaliatory taxes faced when writing policies in other states. The changes amend the state’s insurance code to affirm that surcharges are considered “fees paid in this state” for premium tax purposes.

An insurer may recover the surcharge by including it as an expense in a rate filing or by charging its policyholders accordingly.

The new change also applies to self-insured employers, whose surcharge is tied to claim liabilities and administrative expenses, including legal costs.

The enrolled version of the legislation is available here.

Health Care Costs in State Workers' Comp System Declines

Overall health care costs in the Texas workers’ compensation system declined 14% from 2018 to 2023, according to new data from the Texas Department of Insurance, Division of Workers’ Compensation (DWC). Costs totaled $857 million in 2023, compared to $997 million in 2018. The average cost per claim dropped 4% during the period to $3,245 in 2023 from $3,367 in 2018.

The data is contained in DWC’s 2024 Health Care Cost and Utilization in the Texas Workers’ Compensation System report, released in June. According to the report, decreases were also seen in professional cost and utilization, hospital/institutional cost and utilization, and pharmacy cost and utilization.

According to the report, professional cost and utilization decreased 5% to $529 million in 2023, compared to $556 million in 2018. The number of claims receiving professional services during that time period decreased 11% to 251,000, from 281,000. However, the average cost for professional services increased 7% to $2,105 per claim, from $1,976 per claim.

Hospital/institutional cost and utilization decreased 23% to $281 million in 2023, from $367 million in 2018. The number of claims receiving hospital/institutional services decreased 25% to 63,000 during the period, from 84,000. The average cost for hospital/institutional services per claim increased about 2% to $4,482, from $4,392.

Total cost of pharmacy services decreased 40% to $41 million in 2023, from $69 million in 2018. The number of claims receiving pharmacy services dropped 35% to 70,000, from 108,000. The average cost of pharmacy services per claim decreased 7% to $595, from $638.

The report is available here.

OSHA Updates Inspection Program Criteria

The U.S. Occupational Safety and Health Administration (OSHA) has updated its Site-Specific Targeting (SST) program for workplace inspections.

The SST program is OSHA’s primary planned inspection program for nonconstruction establishments with 20 or more employees. Significant changes in the new program include the following:

  • For high-rate establishments, the SST plan selects individual establishments for inspection based on CY 2023 Form 300A data. The previous SST used CY 2021 data.
  • For upward-trending establishments, the SST plan selects individual establishments for inspection based on CY 2021 through 2023 Form 300A data. The previous SST used CY 2019 through 2021 data.
  • The low-rate establishments list is generated using CY 2023 Form 300A data. The previous SST used CY 2021 data.
  • The nonresponders list is generated using CY 2023 data. The previous SST used CY 2021 data.

OSHA uses the SST program to achieve the goal of ensuring that employers provide safe and healthful workplaces by directing enforcement resources to those workplaces with the highest rates of injuries and illnesses.

By applying industry and establishment-size criteria, OSHA focuses data collection on establishments most likely to be experiencing elevated rates and increased numbers of occupational injuries and illnesses.

The complete update is available here.

Survey Says Worker Satisfaction Highest in Four Decades

A recent survey from The Conference Board finds the number of workers who say they are satisfied with their job is the highest it has been in the 38-year history of the survey. Workers reported higher satisfaction across 26 of 27 categories, declining only in quality of equipment. Sentiment also improved across five additional engagement factors — intent to stay, level of effort, sense of belonging, engagement, and mental health.

The survey also revealed a gap in satisfaction levels between older and younger workers, with 57.4% of U.S. workers under age 25 reporting being satisfied with their jobs. That compares to 72.4% of those aged 55 and older.

The Conference Board Job Satisfaction survey has been conducted since 1987. The 2025 edition is based on data collected through the Consumer Confidence Survey, with responses from 1,700 employed U.S. workers.

Insights in the 2025 survey include:

  • Job satisfaction spiked by 5.7 percentage points — the largest single-year jump in the survey’s history.
  • Economic strength — low unemployment, stable compensation growth — likely buoyed worker morale while workplace innovations like clear performance feedback, hybrid flexibility, and transparent career paths contributed to rising satisfaction.
  • Women still trail men across 21 of 27 job satisfaction metrics — particularly those tied to compensation, like pay, bonuses and retirement benefits.
  • Job turnover slowed in 2024, but satisfaction among recent job switchers slightly outpaced that of job stayers (70.5% vs. 69.6%).
  • Workers moving into new roles cited culture and growth opportunities — not compensation — as primary drivers for change.

Information on downloading the survey is available here.

Survey Rates Performance of Health Plans in the U.S.

A recent J.D. Power survey shows a growing gap between high- and low-performing commercial health plans in the United States. The best performers — regional, Blue Cross Blue Shield, and provider-sponsored plans — are getting better, while the worst performers — the large national carriers — are getting worse.

The survey found satisfaction varies widely across plans and regions: The national average satisfaction score for commercial health plans is 563 (on a 1,000-point scale). In Texas, Baylor Scott & White Health Plan received a score of 629 to be the top choice in the state.

Other key findings include:

  • Some 20% of employers cite low employee satisfaction as a top reason for switching health plans.
  • Members who understand their out-of-pocket costs and out-of-network coverage have higher satisfaction and fewer issues such as denials and inaccessible care. Conversely, among members who say they do not completely understand their out-of-network benefits, 48% had a claim denied and 56% said their choice of network doctor was not available.
  • Many high-impact digital tools remain underutilized: Tools such as chronic condition management programs, provider communication features, and remote monitoring platforms deliver strong satisfaction gains but are underused.
  • The average deductible paid by commercial health plan members working for small employers is $2,847, 8% more than those working for midsized employers ($2,630) and 10% more than those working for large employers ($2,563). More than half (51%) of small-business employees met their deductibles, compared with 52% of midsize business employees and 53% of large-business employees.

The study measures member satisfaction with commercial member health plans in 22 geographic regions. The Kaiser Foundation Health Plan (648) had the highest-ranking score nationwide for the 18th consecutive year.

This year’s study is based on responses from 39,797 commercial health plan members and was fielded from September 2024 through March 2025.

For more information about the study, please visit this link.

Large Medical Claims Increase

Million-dollar medical claims increased 29% in the past year and 61% over four years, according to a recent analysis from Sun Life. The likelihood of encountering a stop-loss claim remains remarkably high, with 88% of employers experiencing one in any given benefit year between 2020 and 2023, Sun Life found.

Cancer remains the cost leader, with malignant neoplasms generating $1.2 billion in spending across approximately 5,000 claims in 2024. This figure triples the expense of cardiovascular conditions, the second-highest category. Meanwhile, claims involving orthopedics/musculoskeletal (Ortho/MSK) conditions are increasing in frequency, placing the category in the top three for the first time.

According to the report, total spend in the Ortho/MSK category is up to more than $1.18 billion for the 2021-2024 time period, representing an average cost increase of more than 50% over the four-year period. Although the average cost is relatively low compared to the other top 20 conditions, it remains at the top of the list due to high frequency. Each year, nearly 50% of employers experience at least one high-cost Ortho/MSK claim.

The information is contained in Sun Life’s 13th annual high-cost claim and injectable drugs trend analysis, which examines more than 65,000 health claims from 3,000 employers between 2021 and 2024. According to the report, health care costs are rising faster than they were before COVID-19. It attributes the increase to the following factors:

  • Increased unit costs of care driven by pressure on providers.
  • Increased cost of labor.
  • Increased cost of supplies.
  • Cost shifting from government programs.
  • More expensive treatments (such as specialty pharmacy).
  • Utilization returning to pre-pandemic levels.

High-cost claims can present challenges for businesses operating self-funded health plans. KFF, an independent nonprofit organization focused on national health issues, estimates 63% of covered workers in the U.S. are in a plan that is self-funded.

The survey report is available here.

Companies Turning to “Quiet Firing” to Trim Workforce

More than half of companies surveyed recently (53%) say they are either currently using or plan to use quiet firing — defined as using indirect means such as benefit cuts, increased workloads, or mandating more office time, to push employees to quit.

According to the survey of 1,128 business leaders conducted by ResumeTemplates in May, the top quiet firing tactics include delaying raises (47%), enforcing stricter rules or policies (46%), increasing workloads without additional pay (45%), increasing required office days (42%), and reducing pay or bonuses (35%).

Micromanaging employees (34%), cutting benefits (32%), and ignoring toxic workplace behavior (22%) are tactics are also being used. A smaller percentage also have or plan to conduct formal layoffs to lower morale among remaining staff (21%).

The leading reason companies cite for reducing staff is slowing revenue or sales (50%). Tariffs and increased trade costs follow closely at 46%. Roughly 39% anticipate a recession, and 39% cite wage inflation. About 31% say staff reductions are needed due to AI or automation replacing roles, 26% point to pressure from investors, and 25% cite rising real estate or facility costs.

Of companies that started quiet firing in 2025, 39% say it has reduced morale a lot, and 46% say it has a little. Only 13% say it’s had a minimal impact on morale, and 2% say it’s had no impact at all. About 27% say it’s been very effective at reducing headcount, while 58% say it’s somewhat effective. Among those who find it ineffective, the top reason is that employees stay because of a tough job market (77%). Additionally, more than half (53%) say workers simply tolerate poor treatment rather than quitting. Other challenges include legal or HR issues (20%) and manager reluctance to fully implement the strategy (13%).

For more information about the survey, please visit this link.

Employers Continue Support for Well-Being Programs

Most employers surveyed recently remain committed to investing in well-being for the coming year, despite challenges such as soaring health care costs, an uncertain global economy, and other world events, according to the recently released Business Group on Health’s 2025 Employer Well-Being Strategy Survey.

According to the survey, 93% of employers said they will maintain or expand well-being offerings for 2025, with 73% maintaining these programs and 20% increasing them. At the same time, 94% of employers say they raise expectations of well-being vendors to deliver improved outcomes.

All employers surveyed reported including mental health in their well-being strategy. In addition, 47% of employers consider mental health to be the most important well-being dimension, while another 44% consider it to be the second most important.

Almost two-thirds of employers reported that the growing utilization of GLP-1s impacts their approach to well-being, leading to them making changes to their well-being offerings or increasing vendor accountability. Moreover, 99% of employers include physical health as a component of their overall well-being strategy. That commitment is on track to continue in 2026.

Some 92% of employers include financial health as a dimension of well-being strategy in 2025, with 100% of employers projected to include it for 2026.

Some three-quarters of employers’ well-being strategies include social connectedness and community through initiatives such as employee resource groups and peer coaching or mentoring.

Fielded in January and February 2025, the survey comprised 131 employers that collectively employ 11.2 million people worldwide. The survey is available here.

Texas News

JD Supra
Texas Supreme Court Lets Employers Shift Fault To Third Parties In Worker Injury Suits: Key Takeaways For Workers’ Comp Nonsubscribers
Texas employers that opt out of the state’s workers’ compensation program recently received a big win that will impact litigation strategies. Click here for full article.  

Business Insurance
Texas Governor OKs Remote Contested-case Comp Hearings
Texas Gov. Greg Abbott signed a bill allowing the Division of Workers’ Compensation to hold hearings by video conference in contested cases. Click here for full article.

State News

Workers’ Comp Executive 
California Improves In Nationwide Workers’ Comp Study
A controversial study by the state of Oregon is out and says California is improving but still one of the more expensive states in the nation for workers’ comp. Click here for full article.

Advocacy CalChamber
Workers’ Compensation: The Who, What, Where of Workplace Injuries
In this episode of The Workplace podcast, CalChamber Associate General Counsel Matthew Roberts and Employment Law Subject Matter Expert Vanessa Greene discuss several important considerations employers face when navigating workers’ compensation claims in California. Click here for full article.

Insurance Journal
D.A. Says Former California Police Officer on Workers’ Comp Went to Festival, Skied
Nicole Brown, 39, of Riverside, faces 15 felony charges, including making fraudulent statements to obtain compensation and filing false insurance claims. Click here for full article.

TSS Colorado
Polis OKs Major Change to Workers’ Compensation System – with a Twist
Gov. Jared Polis signed a controversial bill Wednesday that largely will eliminate limitations on doctor choice for injured workers — and then immediately called for creation of a working group to recommend further changes for the policy and pass a cleanup bill in 2026. Click here for full article.

Insurance Journal
Connecticut Closes Costly Workers’ Comp Loophole Opened by Court
Connecticut lawmakers last month moved to plug what could have been a very costly loophole in workers’ compensation benefits that was created by a state Supreme Court decision in March. Click here for full article.

Insurance Business
Indiana Supreme Court Overturns $600K Workers’ Comp Retaliation Award
Indiana’s top court tossed a $600,000 jury verdict, ruling a teacher’s retaliation claim didn’t meet the strict test tied to workers’ comp protections. Click here for full article.

Insurance Journal
Massachusetts Denies 7.1% Workers’ Comp Rate Hike After 2024 ‘Excessive’ Cut
Massachusetts Insurance Commissioner Michael Caljouw has rejected an industry proposal to raise workers’ compensation rates by 7.1%. Click here for full article.

EMS1
Mont. Governor Vetoes Bill Providing PTSD Workers’ Comp Coverage for First Responders
Montana Gov. Greg Gianforte last week vetoed a bill to identify post-traumatic stress disorder among police, firefighters and emergency care providers as an eligible claim for workers’ compensation. Click here for full article.

WorkCompCentral
Fricker: A New Era for Comp Subrogation
On May 31, Nevada Gov. Joe Lombardo signed into law Senate Bill 258, a bipartisan effort that marks a pivotal turning point in the evolution of workers’ compensation subrogation rights in the Silver State. Click here for full article.

Hoodline
Ohio Maintains Position with Nation’s 5th Lowest Worker’s Compensation Premiums
Ohio’s business community can take a sigh of relief as the state continues to maintain its status as one of the nation’s most affordable for worker’s compensation premiums. Click here for full article.

Insurance Journal
Study Shows Oregon Ranked 14th in US for Workers’ Comp Rates
Oregon’s workers’ compensation rates were among the lowest in the nation last year, according to an analysis released from the Oregon Department of Consumer and Business Services. Click here for full article.

Bloomberg Law
COVID-19 May Be Compensable Injury Under Workers’ Comp Law
A nurse can recover workers’ compensation benefits for Covid-19 contracted as a result of multiple exposures in her workplace, even though she may also have been exposed to the virus in other settings, a West Virginia court said. Click here for full article.

General News

Risk & Insurance
How AI and Value-Based Care Are Reshaping Workers’ Compensation
The landscape of workers’ compensation is evolving, driven in part by a growing emphasis on technology and smarter claims management. Click here for full article.

Insurance Journal
Inflation Impacting Workers’ Comp Medical Costs: WCRI
A new study by the Workers Compensation Research Institute (WCRI) illustrates how rising inflation has impacted the system in recent years. Click here for full article.

WorkersCompensation.com
Lowe’s Worker on Forklift Shot by Coworker
A Lowe’s worker shot and killed his co-worker during an overnight shift at the store, then allegedly confessed to the murder in an email to human resources. Click here for full article.

WorkersCompensation.com 
Mind the Machine: The Potential Hidden Risks of Utilizing AI in Medicare Set-Asides
As Artificial Intelligence (AI) becomes more embedded in daily life, particularly in healthcare and claims administration, the use of AI in Medicare Set-Aside (MSA) allocation preparation has been increasing. Click here for full article.