Soaring medical inflation is hammering workers’ compensation buyers, increasing costs and further straining bottom lines already reeling from the worst economic downturn since the Great Depression.

Medical inflation exploded by 78 percent between 2000 and 2008–the most recent year for which fully adjusted data is available. Workers’ comp insurance buyers, brokers and carriers have sought to soften the impact of rapid medical inflation through aggressive loss control and claims management.

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