Design Highlights
- Rising costs of home health services have increased from an average of $9,000 to $14,200 per workers’ comp claim between 2015 and 2024.
- Skilled nursing facility expenses surged dramatically, from $14,700 to $33,200 since 2015, with a growth rate of 10.9% since 2020.
- Increased utilization of home health and nursing services is a major factor driving up costs, especially for more severe claims.
- Geographic disparities in service pricing lead to significant variations in costs for certified nurse aides and registered nurses across different regions.
- Home health services now account for 25.4% of total costs for claims exceeding $1 million, reflecting the escalating financial burden on compensation systems.
When it comes to workers’ compensation, home health and skilled nursing bills are not just footnotes in the fine print—they’re the headline act. And wow, are they putting on a show. The average cost for home health services per workers’ comp claim has skyrocketed from $9,000 in 2015 to a staggering $14,200 in 2024. That’s a neat little 5% bump each year.
Home health and skilled nursing costs in workers’ comp are soaring—up 5% annually from $9,000 to $14,200!
But wait, there’s more! Skilled nursing facility costs have exploded from $14,700 to $33,200 in the same timeframe, with a jaw-dropping 10.9% annual growth since 2020. Clearly, someone’s cooking the books, or at least the bills.
What’s driving these costs? Well, it’s a perfect storm of rising service prices, increased utilization, and, of course, a shift toward more severe claims that require intensive care. Who needs a simple sprain when you can have a catastrophic injury, right?
These home health and skilled nursing services are particularly impactful when it comes to those long, drawn-out claims. For claims exceeding $1 million, home health alone accounts for about 20.1% of total medical costs. That’s a slice of the pie no one wants to share. Home health cost growth has moderated recently but remains above inflation, adding further pressure to the overall expenses. The projected share of home health costs for claims over $1 million is notably high at 20.1%, which underscores the financial strain on compensation systems.
You might think, “Hey, maybe this is just a local problem?” Nope! Geographic variation is rampant. You could pay a certified nurse aide anywhere from $16 to over $50 an hour, depending on where you are. Registered nurses? They could rake in between $57 to a whopping $200 an hour. Good luck figuring out that kind of pricing structure!
Now, let’s talk about claim severity. For those nasty claims costing between $250K and $500K, home health and skilled nursing services make up about 3.1% of total medical costs. Premiums are calculated based on payroll size, job classification rates, and the employer’s claims history, which means these escalating costs can directly impact what businesses pay for coverage.
But when you hit the big leagues of claims over $1 million, those services jump to around 25.4%. That’s not pocket change. As claims age, the share of home health services grows like a weed, reaching about 12% after 30 years. That’s a long time to be dealing with costs that just keep on climbing.
