NCCI Releases Research Study on Benefit Duration

Posted Date: April 26, 2012

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NCCI's newest research brief updates a previous paper published in 2011. While this study confirms prior findings that average duration of payments for Temporary Total Disability (TTD) indemnity benefits has been increasing since the onset of the recession in late 2007, there is evidence that the trend might be moderating in 2010.

Countrywide, our estimate of ultimate mean duration of TTD indemnity benefits has risen from about 123 days for injuries that occurred in 2006 to a forecasted high of 143 days for injuries that occurred in 2009, moderating slightly to 141 days in 2010. The national unemployment rate deteriorated nationally from 4.6% in December 2007 to 9.3% in December 2009, and rising further to 9.6% in December 2010.

Data for this study is claims with injury dates from 1998 through the first six months of 2010 for which TTD indemnity benefits have been paid.

The duration of TTD benefits is determined by adding the number of distinct compensated days reported on indemnity payment transactions. The data was edited for reasonableness, removing less than 1% of the claims, as discussed in the methodology section in Appendix I.

Lump sum settlements were included where the compensated days were listed as part of the payment. If a settlement transaction only included a single covered day, then only that one day was included as part of the claim duration.