Workers' compensation benefits, which often grow with employment and earnings, increased in 2011 as the U.S. economy continued its recovery.

After declining in the wake of the recession, total benefits rose by 3.5 percent to $60.2 billion, according to a new report from the National Academy of Social Insurance (NASI).  Total costs to employers rose by 7.1 percent to $77.1 billion.

The increase in benefits includes a 4.5 percent rise in medical care spending to $29.9 billion and a 2.6 percent rise in wage replacement (cash) benefits to $30.3 billion.

When benefits and costs are measured relative to total covered wages, benefits remained unchanged, and costs to employers rose very modestly (to $1.27 per $100 of wages) after declining in the previous five years.  

At the state level, the new report found coverage and wages increased in all 50 states and the District of Columbia.  Total benefits paid to injured workers increased in 29 jurisdictions, with benefits as a percent of total wages increasing in 17.  Employers' costs of workers' compensation as a percent of total wages increased in 31 states, and remained unchanged in four.  The share of benefits paid for medical care exceeded 50 percent in 33 states.

Workers' compensation was the first social insurance program in the United States; 2011 marked the 100^th anniversary of the first state laws.  NASI's report provides the only comprehensive data on workers' compensation benefits, coverage and employer costs for the nation, the states, the District of Columbia and federal programs.