Controlling work comp costs: insights from three studies

Survey: U.S. employee perspectives on managing chronic conditions in the workplace, Harvard T.H. Chan School of Public Health and the de Beaumont Foundation, 2025

Findings: Almost 3 out of 5 workers with a chronic physical health condition are keeping that information from their employer. Over three-quarters of employees with chronic health conditions need to manage their conditions during regular work hours, including breaks and time off, but many feel they do not have adequate time to address their health issues. More than a third of these workers sacrifice healthcare to avoid interfering with work. Many feel stigmatized and believe they have missed opportunities for more hours, promotions, and/or have received bad reviews because of their chronic condition. A third of all employees say they have helped family members with their chronic conditions in the past year, and nearly half of those helping family members (45 percent) said they frequently needed to do so during working hours.

Why this matters: Chronic conditions are silent robbers in the workplace, affecting employee wellbeing, productivity, job satisfaction, and retention. Certain chronic conditions may affect an employee's ability to work safely, particularly in physically demanding or hazardous environments. If there is an injury, chronic conditions can delay recovery, complicate treatment, and escalate costs. Employees with chronic conditions who don't feel supported by their employer are also more likely to seek legal representation.

Knowing about an employee's chronic condition allows an employer to help the employee manage their health more effectively, ensure their safety is protected, and understand the challenges the employee may face. Supportive involvement will lead to less absenteeism, fewer incidents, and better productivity. The survey is a wake-up call to employers to understand why employees are hesitant to disclose chronic health conditions, examine accommodation policies, and educate supervisors on how to support employees challenged by chronic health conditions.

Survey: 2025 Workers' Comp Industry Insights Survey Report, Healthesystems and Risk & Insurance Magazine, 2025

Findings: Industry stakeholders identified litigation as their top challenge, increasing by 14 percent from a year ago. While this is a departure from the healthcare-related challenges that topped the list in the past few years, healthcare shortages (#1 last year) and poor worker health/comorbidities (#6 last year) came in second and third. Mental health, which was #3 last year, came in at #4. Notably, the use of network providers as a priority for medical management increased more than 13 percent from 30 percent in 2023 to 43.33 percent.

Major barriers to injured worker recovery are comorbidities/poor worker health, injured worker disengagement/unfamiliarity with the workers' comp system, and limited availability of transitional duty/return to work options. Workplace safety challenges fell from #2 to #8, which may reflect economic and labor issues. Advanced technologies continue to gain prominence, particularly in claims processing, identifying potential fraud, waste, telemedicine, and personalizing the injured worker experience.

Why this matters: Litigation increases claim duration and costs by making it more difficult to communicate and coordinate care for injured workers. Claim complexity, which can be driven by comorbidities and mental health issues, is closely intertwined with litigation. But employers can reduce the risk of a claim going to court by providing more support for employees' overall health, strengthening medical treatment networks, focusing on quality rather than cost of care, and addressing why their employees hire attorneys. Further, evaluating, bolstering, and promoting Recovery-at-Work programs demonstrate a genuine commitment to employee well-being and foster employee engagement.

Study: Industry Drill Down - The Next Level, NCCI, 2025

Findings:NCCI is now offering a new series of industry-level trend analyses and insights using NAICS codes that look at premium share, frequency, and employment levels by industry. Recent reports focus on construction and manufacturing.

Construction

• There was an average annual employment gain of nearly three percent from 2015-2023
• The sector experienced less churn, meaning fewer hires and separation, suggesting higher tenured workers
• Injury frequency declined more than 50 percent faster than the all-industry average
• The claim frequency of small policies is declining faster than the frequency of large policies, though small policies still have a higher frequency level

Manufacturing

• The industry experienced slower employment growth (0.6 percent annually) from 2015-2023 compared to the all-industry average (1.3 percent)
• The industry saw increased churn, meaning more hires and separations, potentially resulting in shorter-tenured workers
• Frequency mirrored the all-industry trend. However, since 2019, the average frequency decline has slowed across all subsectors. Transportation Equipment has seen the most significant slowdown because of an unprecedented demand for deliveries and a limited labor pool

Why this matters: Employment has a significant impact on frequency trends. A high churn rate may indicate that experienced workers who are less likely to suffer injuries are leaving. A labor shortage can drive fatigue and overexertion, increasing frequency. Employers should also stay abreast of industry trends to monitor operations, remain competitive, and adapt to changing markets.