Workers’ compensation is a no-fault system in Minnesota: the employee does not need to prove negligence on the part of the employer to establish liability and the employer cannot use negligence on the part of the employee as a defense to a claim, according to the Minnesota Department of Labor and Industry.
The agency noted that workers’ comp benefit costs have declined relative to payroll since early 2002.
In 2014, Minnesota was the middle of the pack (20), just above Missouri, in a ranking of workers’ compensation premium rates in the 50 U.S. states and the District of Columbia. The state’s workers’ comp index rate stood at $1.99 per $100 of payroll or 107 percent of the national median, which was $1.85 in 2014, according to the Oregon Department of Consumer & Business Services, 2014 (bi-annual Workers’ Compensation Premium Rate Ranking report).
Minnesota Workers’ Comp Market Share Top 10 Companies (2014)
| Company | Direct Premiums Written 2014 | % Market Share | |
| 1. | SFM Mutual Insurance Co. | $102,092,642 | 10.2% |
| 2. | Zurich American Insurance Co. | $34,543,050 | 3.5% |
| 3. | Western National Mutual Ins. Co. | $30,462,643 | 3.0% |
| 4. | Owners Insurance Co. | $26,007,585 | 2.6% |
| 5. | Acuity A Mutual Insurance Co. | $23,437,880 | 2.3% |
| 6. | Travelers Indemnity Co. of Amer. | $23,421,823 | 2.3% |
| 7. | Federated Mutual Insurance Co. | $23,390,041 | 2.3% |
| 8. | Secura Insurance A Mutual Co. | $19,929,583 | 2.0% |
| 9. | New Hampshire Insurance Co. | $19,090,708 | 1.9% |
| 10. | West Bend Mutual Insurance Co. | $18,818,259 | 1.9% |
| Total Premiums Written (all companies) | $998,845,976 | 100.000% |
Source: Minnesota Department of Commerce
The Workers’ Compensation Research Institute reported that Minnesota implemented several system changes in 2013 that were directed at medical, indemnity and vocational rehabilitation benefits, and this year put in place new hospital inpatient fee regulations.
WCRI said that Minnesota has seen little change in overall medical payments per claim since 2009, but a study by the institute identified growth in hospital payments as a key driver of moderate medical cost growth between 2005 and 2013.
From 2005 to 2013, payments per service for treatment, operating and recovery room services in the state grew about 8 percent annually, faster than other hospital outpatient service groups, according to WCRI.
For 2012 claims evaluated in 2015, costs for paid claims in Minnesota — at an average of $8,116 — were 18 percent lower than typical in a comparison of 18 states studied by WCRI.
Related:
Topics Workers' Compensation Talent Minnesota
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