What is Workers’ Compensation?
Workers’ compensation was the country’s first social insurance program. It provides funding for medical care, rehabilitation, and cash benefits for workers who are injured on the job or suffer a work-related illness. Each state has its own workers’ compensation program. Total benefits paid and total employer costs vary widely across states, but much of the variation can be attributed to interstate differences in employment and wages.
By the Numbers
In 2023, U.S. workers’ compensation programs covered nearly 150 million jobs and close to $11 trillion in wages, exceeding the levels from prior to the COVID-19 pandemic.
From 2022 to 2023, the number of U.S. jobs covered by workers’ compensation increased by 2.3%, and between 2019 and 2023, covered jobs increased by 3.6%.
Between 2019 and 2023, covered wages increased by 26.6%, including a 5.7% increase from 2022 to 2023.
In 2023, coverage continues to be dominated by private insurers (55.6% of benefits paid). Self-insured employers account for about quarter of benefit payments, with state funds and the federal government making up the remainder.
In 2023, total benefits paid amounted to $64.1 billion, with $30.3 billion in medical benefits and $33.8 billion in cash benefits.
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