Workers Compensation Temporary Total Disability Indemnity Benefit Duration

Posted Date: May 24, 2010
    
Industry InformationResearch

 

Temporary Total Disability indemnity benefits are provided to injured workers to replace wages―and other specified costs such as vocational rehabilitation―while the claimant is recovering from a work-related injury or illness and is not able to work. Claim duration is the number of compensated days of lost wages.

Key Findings

Countrywide, the duration of Temporary Total Disability (TTD) indemnity benefits increased from about 92 days to 129 days between 1996 and 2001 and has remained fairly constant from 2001 to 2007.  We estimate that the current average countrywide TTD ultimate duration is about 125 days.

TTD duration varies significantly by state. For example, South Dakota has an average TTD duration of 63 days, while Louisiana has an average TTD duration of 196 days. Many states followed the countrywide pattern above of change in duration over time, but a few states have substantially different patterns. For example, in Florida, Senate Bill 50A in 2003 appears to have reduced claim duration.

The median countrywide duration of TTD benefits is much lower, at about 42 days. Median TTD duration by state ranges from a low of 14 days in Hawaii to a high of 94 days in Texas.

The median countrywide duration for claims that do not include any permanent benefits is 27 days, while the median duration of TTD benefits on claims that eventually also include payments for permanent impairment benefits is 111 days.