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Experience Rating, Work Injuries and Benefit Costs: Some New Evidence

Experience Rating, Work Injuries and Benefit Costs: Some New Evidence

Michele Campolieti, Douglas Hyatt et Terry Thomason

Volume : 61-1 (2006)

Abstract

In 1986, British Columbia’s Workers’ Compensation Board introduced an experience rating program that provided a modest financial incentive for employers to reduce the costs of claims. Using a comprehensive panel data set, we find that claims frequency for health care only and short-term disability claims was reduced following the introduction of experience rating. The introduction of the program did not affect costs for most claim types, except for health care only claims.