Data from the Minnesota Department of Labor and Industry shows that the state’s workers’ compensation claim rate has fallen to its lowest level on record.
The report, which is a continually updated collection of data, has been monitoring Minnesota workers’ compensation rates since 2004. The latest report issued earlier this month found that the number of paid claims per full-time-equivalent worker dropped a whopping 42 percent between 2004 and 2024. Let’s take a closer look at some other data from the annual injury report in today’s blog.
Findings From The Minnesota Workers’ Compensation System Report
Here’s a closer look at some of the most interesting findings from the updated report:
- Relative to the number of full-time-equivalent (FTE) workers, the total number of paid claims dropped by 42%, indemnity claims by 32% and medical-only claims by 45% from 2004 to 2024. The total claim rate reached its lowest level in 2024 compared to any other reported year.
- The average cost of a 2023 workers’ compensation claim was $13,780 for medical and indemnity benefits combined (including vocational rehabilitation).
- Indemnity benefits per $100 of payroll were down 41%, while medical benefits per $100 of payroll were down 54% between 2004 and 2024. Medical and indemnity benefits (including vocational rehabilitation) combined amounted to $0.49 per $100 of payroll for 2024.
- In 2024, on a current-payment basis, the three largest components of total workers’ compensation system cost were insurer expenses (33%), medical benefits (32%) and indemnity benefits other than vocational rehabilitation (30%).
- Total disability benefits (temporary total disability benefits and permanent total disability benefits combined) per indemnity claim increased 37% from 2004 to 2024.
- Temporary partial disability (TPD) benefits per indemnity claim decreased 27% from 2004 to 2024.
- Permanent partial disability (PPD) benefits per indemnity claim decreased 38% from 2004 to 2024.
- Settlement benefits per indemnity claim decreased 15% from 2004 to 2024.
- An estimated 4,435 workers will receive vocational rehabilitation services for their 2024 injuries and illnesses, a 9% decrease from 2023.
- 57% of vocational rehabilitation participants reported a job at plan closure in 2025, down from 61% in 2024.
- The denial rate for non-COVID-19 claims with 2024 injuries was 17.4%, which is slightly higher than the 17.0% rate in 2023.
So what does this all mean? Much of the data suggests that injuries are trending in the right direction and that workplaces are taking more care in protecting their employees, but some of the data is still pretty concerning. For example, as great as vocational rehabilitation can be, the data suggests that 43% of patients who connect with a qualified rehabilitation consultant with the goal of finding gainful employment haven’t done so by the conclusion of their care plan. That’s simply too many injured workers without a clear path back into the workforce.
Another issue is the denial rate. Insurers are denying primary liability for an injury at a rate of roughly one denial for every five submitted claims. That’s too many injured workers unable to get the benefits they deserve. Working with an injury lawyer certainly helps lower the denial rate, but it’s still too high and these denials are making it even harder for injured workers to get the help they deserve.
Let us help you build a strong claim so that you can avoid a denial and help connect you with vocational rehabilitation groups that we’ve had a track record of success with in the past. Winning a claim is the first step, but helping you find your way back into gainful employment is our goal. We’ve done that for countless clients and can do the same for you. Give the team at Hey Workers a call today at (844) 439-9675.
