A WCRI FLASHREPORT. Benchmarking Florida s Permanent Impairment Benefits. Richard A. Victor Duncan S. Ballantyne. September 2001 FR-01-05

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1 A WCRI FLASHREPORT Benchmarking Florida s Permanent Impairment Benefits Richard A. Victor Duncan S. Ballantyne September 2001 FR WCRI FLASHREPORTS are data-based analyses of specific and highly topical issues that are typically being debated in current public policy debates. They are often done in response to requests for analyses by public officials or stakeholder groups. Since they are based on already-published WCRI data and methods, they are not separately subjected to the standard WCRI review process. Typically, these reports rely on the WCRI Detailed Benchmark/Evaluation (DBE) Database. WCRI FLASHREPORTS are published in electronic format and widely distributed at no charge to the workers compensation community at the time of publication. Subsequent copies can be obtained by ordering from the WCRI web site at Workers Compensation Research Institute 955 Massachusetts Avenue Cambridge, MA (617)

2 BENCHMARKING FLORIDA S PERMANENT IMPAIRMENT BENEFITS Benefits for permanent disability have long been a contentious issue in Florida. In 1979, Florida adopted a wage-loss benefit system. Dissatisfied with the results of the wage-loss approach, Florida moved to an impairment-based benefit in The Florida impairment benefit levels have been criticized as low. Some also believe that, if low, the impairment benefit may create incentives for judges to more frequently award permanent total disability benefits. This study compares permanent impairment benefits in Florida with similar benefits in other large states. This study was done at the request of the Florida Senate Banking and Insurance Committee. The questions posed to WCRI were: How do Florida's permanent impairment benefits compare with those in other states? Some perceive Florida's permanent impairment benefits to be low and suggest that the low benefits result in more permanent totals. Does the current level of permanent impairment benefits result in a greater number of permanent totals? How do we compare with other states? This study benchmarks the Florida impairment benefits by (1) comparing the statutory impairment benefits in Florida with those for similar injuries in nine other large states that pay impairment benefits; (2) comparing actual impairment benefits paid in Florida with permanent partial disability (PPD) benefits in five other large states that are part of the WCRI CompScope TM studies. The methods used to compare statutory benefits are drawn from an earlier WCRI study 1, and the data on actual benefit payments are for 1997 injuries with experience as of mid-1999, and come from the WCRI Detailed Benchmark/Evaluation (DBE) Database. The methods and data are discussed further in the Appendix. These large states in this study that use impairment benefits represent 28 percent of the nation s workers compensation benefits. MAJOR FINDINGS Among the major findings of this study are: Statutory permanent impairment benefits in Florida are significantly less than in the other states studied. For workers earning $400 per week, they are generally percent of the statutory impairment benefits in the nine other states studied. This is true for both back injuries and injuries to limbs (fingers, arms, feet and legs). For workers earning $800 per week, Florida workers are entitled to statutory impairment benefits that are percent of the statutory benefits for similar injuries in most of the other states studied. However, low statutory impairment benefits do not necessarily mean actual impairment benefit payments are low in Florida. When Florida s actual average permanent impairment payments per claim are compared with permanent partial disability payments in five other large states, Florida is neither unusually high nor unusually low. Although Florida s statutory impairment benefits are about half of those in Connecticut, Texas and Georgia, the actual average impairment payments per claim are similar to those in Connecticut, 26 percent higher than in Texas, and 38 percent lower than in Georgia, for workers earning $400 per week. The surprising finding above that, despite low statutory impairment benefits in Florida, actual impairment payments are similar to or higher than actual impairment payments in Connecticut and Texas, suggests that the payment for impairment may actually include an implicit payment for settling a permanent total disability claim. This question merits further study, but is outside the scope of this WCRI FLASHREPORT. 1 Ballantyne, D Workers Compensation in Kentucky: Administrative Inventory. Cambridge, MA: Workers Compensation Research Institute. WCRI FLASHREPORT September 2001 FR Page 2 of 11

3 STATUTORY IMPAIRMENT BENEFITS IN FLORIDA By statute, impairment benefits in Florida are paid when a worker reaches maximum medical improvement (or nears the 104-week benefit limit), and receives an impairment rating under the Florida Impairment Rating Guide. The worker receives three weeks of benefits for each impairment rating point. Each week of benefits is paid at one-half of the worker s temporary total disability benefit amount. Temporary total disability benefits are two-thirds of the worker s average weekly wage, subject to a maximum weekly benefit that is equal to the state s average weekly wage. The maximum weekly impairment benefit is one-half of the temporary disability benefit maximum. And impairment benefits are capped at 300 weeks. How does this compare with other large states that pay impairment benefits? In most states, impairment benefits are paid when the worker receives an impairment rating at maximum medical improvement. The number of weeks of benefits per impairment rating point varies among the states. The weekly impairment benefit payment is also variable in most states, ranging from 50 to 100 percent of the temporary disability benefit. The maximum weekly impairment benefit also varies widely with some states setting this at the state s average weekly wage and other states establishing a lower amount. And the maximum number of weeks of impairment benefits typically ranges from 300 to 600. ANALYSIS AND RESULTS We compared statutory benefits for back and limb injuries in Florida and nine other large states with permanent impairment benefits. We did so for workers earning $400 and $800 per week. By statutory benefits, we mean the benefit payments that the statute says a worker should get if he or she receives a specified impairment rating for a certain type of injury. The actual payments received may differ from statutory benefits because of the way that (1) ratings are done, (2) judges make decisions, or (3) settlements are negotiated. Back Injuries Statutory permanent impairment benefits in Florida are generally percent of the statutory PPD (impairment) benefit in most of the nine other states studied, for workers earning $400 per week. Tables 1 and 2 and Figure 1 show the benchmarking comparisons for back injuries to a 39-year-old worker. The tables and figure show the statutory benefit for a range of impairment ratings. WCRI FLASHREPORT September 2001 FR Page 3 of 11

4 Figure 1: Florida Statutory Impairment Benefits Are Lower Than Other Large Impairment s For Back Injuries Statutory Impairment Benefit per Claim ($) $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2% 4% 8% 12% 16% 20% 40% 50% Impairment Rating Colorado Washington Illinois Indiana New Jersey Connecticut Texas Georgia North Carolina Florida Note: Figures are benefits established by statute for a 39-year-old worker with a back injury who earns $400 per week. Actual payments may vary from the statutory benefit. See the discussion of actual benefit payments below. Note also that the figures for North Carolina and Georgia are the same, so the line for North Carolina represents both states. Florida is the lowest or near lowest for all impairment ratings depicted in the tables and figure for back injuries. This conclusion would not be materially different for older or younger workers, or for workers with higher or lower weekly earnings although benefits in some of these states depend on the weekly earnings, but not in all states. Table 1A shows a 39-year old Florida worker earning $400 per week with a back injury would be entitled to receive a $6,223 statutory benefit for a 16 percent impairment, compared with over $23,000 in Colorado, nearly $22,000 in Washington state, and $12,500- $14,200 in North Carolina, Georgia, Texas and Connecticut. And as Table 1B shows, Florida impairment benefits are also lower than the other states for workers earning higher weekly amounts (in this example, $800 per week). However, the disparity is smaller between Florida and some of the other states for higher paid workers specifically, Washington, Indiana, New Jersey, Georgia and Texas. In Georgia and Texas, this results from a relatively low maximum weekly impairment benefit ($375 and $373, respectively). In Washington, Indiana and New Jersey, this occurs because the total impairment benefit due is not tied to wages, only to the impairment rating. WCRI FLASHREPORT September 2001 FR Page 4 of 11

5 Table 1A Statutory Impairment Benefit Comparisons for Back Injuries Florida versus Nine Large s with Impairment Benefits, Worker Earning $400 Weekly Impairment Rating 2% 4% 8% 12% 16% 20% 40% 50% Colorado $2,913 $6,050 $11,688 $17,433 $23,027 $28,476 $53,247 $64,573 Washington $2,805 $5,611 $11,290 $16,673 $21,914 $27,238 $51,188 $61,918 Illinois $2,385 $4,742 $9,377 $13,906 $18,333 $22,658 $42,855 $52,115 Indiana $2,122 $4,425 $8,630 $14,954 $19,883 $24,462 $62,821 $81,184 New Jersey $1,882 $3,738 $7,374 $10,911 $14,988 $22,069 $58,690 $71,001 Connecticut $1,707 $3,642 $7,222 $10,740 $14,198 $17,598 $33,741 $41,207 Texas $1,673 $3,335 $6,624 $9,869 $13,068 $16,224 $31,367 $38,555 Georgia $1,594 $3,176 $6,309 $9,399 $12,446 $15,452 $29,873 $36,719 North Carolina $1,594 $3,176 $6,309 $9,399 $12,446 $15,452 $29,873 $36,719 Florida $797 $1,588 $3,154 $4,699 $6,223 $7,726 $14,936 $18,359 Note: Figures are benefits established by statute for a 39-year-old worker with a back injury who earns $400 per week. Actual payments may vary from the statutory benefit. See the discussion of actual benefit payments below. Table 1B Statutory Impairment Benefit Comparisons for Back Injuries Florida versus Nine Large s with Impairment Benefits, Worker Earning $800 Weekly Impairment Rating 2% 4% 8% 12% 16% 20% 40% 50% Colorado $5,826 $12,099 $23,376 $34,865 $46,053 $56,950 $106,492 $129,143 Illinois $4,770 $9,485 $18,754 $27,813 $36,665 $45,317 $85,710 $104,231 North Carolina $3,187 $6,352 $12,618 $18,797 $24,892 $30,903 $59,745 $73,437 Connecticut $3,080 $6,570 $13,028 $19,375 $25,614 $31,746 $60,869 $74,336 Washington $2,805 $5,611 $11,294 $16,979 $22,121 $27,657 $53,363 $66,002 Georgia $2,241 $4,467 $8,872 $13,217 $17,502 $21,729 $42,009 $51,636 Texas $2,229 $4,443 $8,825 $13,146 $17,409 $21,613 $41,785 $51,361 Indiana $2,127 $4,245 $8,973 $15,203 $20,329 $25,396 $73,437 $90,116 New Jersey $1,882 $3,738 $7,374 $10,911 $14,988 $22,069 $66,026 $99,908 Florida $1,594 $3,176 $6,309 $9,399 $12,446 $15,452 $29,873 $36,719 Note: Figures are benefits established by statute for a 39-year-old worker with a back injury who earns $800 per week. Actual payments may vary from the statutory benefit. See the discussion of actual benefit payments below. As Table 2 shows, Florida s statutory impairment benefits for a worker with a back injury earning $400 per week are as low as 23 percent of the Indiana statutory benefit for the more serious impairments, and percent of the statutory benefit in Texas, Connecticut, Georgia and North Carolina for all impairment ratings shown. As discussed earlier, the relative values for a higher and lower paid workers are similar for Colorado, Connecticut, Illinois and North Carolina, but higher for the other five states. For a worker earning $800 per week, Florida s statutory impairment benefits for a back injury are about half of impairment benefits for similar injuries in Washington, 70 percent of impairment benefits in North Carolina and Texas, and 40 to 80 percent of impairment benefits in New Jersey and Indiana (depending on the impairment ratings). WCRI FLASHREPORT September 2001 FR Page 5 of 11

6 Table 2 Statutory Impairment Benefit Comparisons for Back Injuries Florida Impairment Benefit as a Percent of Each of Nine Large s with Impairment Benefits, Worker Earning $400 Weekly Impairment Rating 2% 4% 8% 12% 16% 20% 40% 50% Colorado 27% 26% 27% 27% 27% 27% 28% 28% Washington 28% 28% 28% 28% 28% 28% 29% 30% Illinois 33% 33% 34% 34% 34% 34% 35% 35% Indiana 38% 36% 37% 31% 31% 32% 24% 23% New Jersey 42% 42% 43% 43% 42% 35% 25% 26% Connecticut 47% 44% 44% 44% 44% 44% 44% 45% Texas 48% 48% 48% 48% 48% 48% 48% 48% Georgia 50% 50% 50% 50% 50% 50% 50% 50% North Carolina 50% 50% 50% 50% 50% 50% 50% 50% Note: Figures are benefits established by statute for a 39-year-old worker with a back injury who earns $400 per week. Actual payments may vary from the statutory benefit. See the discussion of actual payments below. Injuries to Limbs Florida statutory benefits for injuries to limbs are similarly lower than the other impairment states studied. The relative magnitudes are similar to those described above under statutory benefits for back injuries. For workers earning $400 per week, Florida s statutory impairment benefits for a limb injury are 20 to 50 percent of impairment benefits for similar injuries in most of the other states. For workers earning $800 per week, Florida s statutory impairment benefits for a limb injury are 20 to 80 percent of impairment benefits for similar injuries in most of the other states. Figure 2: Florida Statutory Impairment Benefits Lower Than Other Large Impairment s for Injuries to Limbs Statutory Impairment Benefit per Claim ($) $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Finger (1) Foot (2) Leg (3) Arm (4) Hand (5) Impairment Rating Indiana Washington North Carolina Georgia New Jersey Illinois Connecticut Texas Florida Colorado Notes to Figure 2 and Table 3: Injuries are for 39-year-old worker who earns $400 per week. Injuries are as follows: 1. Amputation of an index finger at the proximal (or second joint), (8 percent of the whole body as specified by the AMA Guides) percent loss of use of a foot (12.5 percent of the whole body) percent loss of use of a leg (20 percent of the whole body) percent loss of use of an arm (30 percent of the whole body) 5. Total loss of use of a hand (but not amputation) (54 percent of the whole body) Actual benefits may differ from statutory benefits. See the discussion of actual benefits below. WCRI FLASHREPORT September 2001 FR Page 6 of 11

7 Table 3 Statutory Impairment Benefit Comparisons for Injuries to Limbs Florida versus Nine Large s with Impairment Benefits, Worker Earning $400 Weekly Body Part Finger Foot Leg Arm Hand Indiana $17,260 $22,363 $28,408 $31,400 $73,437 Washington $15,050 $14,583 $39,513 $39,513 $66,153 North Carolina $11,688 $18,416 $25,176 $29,873 $47,617 Georgia $10,419 $17,433 $28,242 $28,242 $38,949 New Jersey $9,890 $21,209 $36,387 $39,053 $59,749 Illinois $9,377 $17,895 $22,658 $26,467 $40,938 Connecticut $8,636 $14,883 $18,270 $23,352 $36,197 Texas $6,624 $10,405 $16,224 $23,926 $41,361 Colorado $3,316 $9,395 $18,245 $18,245 $18,245 Florida $3,154 $4,955 $7,726 $11,393 $19,695 Note: See notes for Figure 2 for definitions of the impairments for each body part. Injuries are for 39-year-old worker who earns $400 per week. BENCHMARKING FLORIDA S ACTUAL IMPAIRMENT PAYMENTS As Table 4 shows, among the six WCRI CompScope TM states that pay benefits based on impairment or loss of wage-earning capacity, Florida is neither unusually high nor unusually low, based on the PPD payment made in PPD claims. Since Florida has statutory impairment benefits that are unusually low, this shows that having low statutory benefits does not necessarily mean that a state has low actual benefits. Table 4 Actual Average PPD Payment in PPD Claims, 1996 and 1997 Injuries Actual Average PPD Payment in 1997 PPD Claims (Experience to 6/99) Florida s Actual PPD Payment as a Percent of the Shown (1997) Actual Average PPD Payment in 1996 PPD Claims (Experience to 6/99) Florida s Actual PPD Payment as a Percent of the Shown (1996) California $8,028 88% $11,075 77% Connecticut $7, % $9,327 92% Florida $7, % $8, % Georgia $11,370 62% $11,418 75% Texas $5, % $6, % Wisconsin $6, % $7, % Note: PPD benefits in Florida, Connecticut, Georgia and Texas are based on impairment. PPD benefits in Wisconsin are based on both impairment and loss of earning capacity. In California, they are based on loss of earning capacity. 2 Both 1997 and 1996 injuries evaluated with experience as of June 30, Four of these states use impairment benefits (Connecticut, Texas, Georgia and Florida). Although Florida s statutory impairment benefits are about half of those in Connecticut, Texas and Georgia, the actual average impairment payments (in claims with impairment benefits) are similar to those in Connecticut, percent higher than in Texas, and percent lower than in Georgia for the cases analyzed. The difference between statutory and actual impairment benefits is probably driven by the implementation of the statutory benefits judicial behavior in making awards, settlement behavior of the parties and rating behavior of medical providers. 2 Barth, P. and M. Niss Permanent Partial Disability Benefits: Interstate Differences. Cambridge, MA: Workers Compensation Research Institute. WCRI FLASHREPORT September 2001 FR Page 7 of 11

8 CONCLUSIONS AND POLICY IMPLICATIONS Statutory permanent impairment benefits in Florida are low compared with other large states with impairment-based PPD benefits. Several system design features account for this. First, Florida bases these benefits on 50 percent of the weekly benefit for total disability; a number of states base benefits on the full weekly temporary total disability benefit. 3 Second, the maximum weekly impairment benefit is the lowest of all the large impairment states analyzed (see Table 5). And third, the Florida statute sets 300 weeks of benefits to equal the whole body. While not unusual, 300 weeks is at the lower end of the states studied (Table 5). Table 5 Statutory Maximum Weekly Impairment Benefit and Number of Weeks for the Whole Body (as of January 1, 2001) Maximum Weekly Impairment Benefit ($) Weeks for Whole Body Impairment New Jersey Illinois Indiana See notes See notes Colorado See notes 400 Connecticut Florida Georgia North Carolina Texas Washington See notes See notes Notes: The maximum weekly benefit in Colorado for back injuries is $594. For limb injuries, a flat weekly amount ($186) is paid, independent of the worker s wage. Washington lists a fixed dollar amount, rather than a weekly rate, for total-body impairment. When benefits are paid, the worker receives an initial payment equal to three times the state s average weekly wage; the balance is paid at the worker s TTD rate ($822 maximum weekly amount). Indiana assigns a fixed value by statute that is independent of the worker s wage. For Indiana, the values are stated in degrees (100 maximum). Weekly benefits are paid at the worker s TTD rate ($762 maximum weekly amount). Despite having low statutory permanent impairment benefits, Florida does not have low actual permanent impairment benefit payments. This suggests the possibility of adaptive behavior to raise actual payments above statutory benefits by judges in making awards, by medical providers who do the permanent impairment ratings, and/or by the parties to a settlement. The evidence is consistent with the observation by Barth and Niss, in instances where the worker seems likely to become a claimant for permanent total disability, the settlement value of the PPD claim is influenced by the value of the PTD claim and the likelihood of the worker s being rated for permanent total disability. Because the probability of receiving a PTD award appears to be higher in Florida than in most other states, in practice many PPD cases appear to settle for more than they would were they based strictly on impairment. 4 Data from National Council on Compensation Insurance show that Florida indeed has a much higher use of PTD benefits than all other states except Alabama (Table 6). Some observers attribute this to the unusual statutory standard in Florida for PTD benefits eligibility for SSDI. Although the evidence is consistent, it is beyond the scope of this study to determine whether this is true or not. 3 In other words, Florida bases impairment benefits on one-third of the workers average weekly wage. In other states, this is typically higher in some states, as high as two-thirds of the worker s average weekly wage. 4 Barth, P. and M. Niss Permanent Partial Disability Benefits: Interstate Differences. Cambridge, MA: Workers Compensation Research Institute. p. 82. WCRI FLASHREPORT September 2001 FR Page 8 of 11

9 Table 6 PTD Claims per 100,000 Employed Workers, by Policy Period PTD Claims per 100,000 Employed Workers Alabama 1/96-12/96 38 Florida 10/95-9/96 27 South Dakota 1/96-12/96 14 Colorado 3/96-2/97 10 Georgia 1/96-12/96 9 New Jersey 1/96-12/96 9 Montana 1/96-12/96 8 New York 1/96-12/96 7 California 1/96-12/96 6 Illinois 4/96-3/97 6 Mississippi 1/96-12/96 6 North Carolina 1/96-12/96 5 South Carolina 1/96-12/96 5 Texas 1/96-12/96 5 Connecticut 1/96-12/96 4 Tennessee 1/96-12/96 4 Wisconsin 1/96-12/96 4 Arkansas 8/96-7/97 3 Louisiana 4/96-3/97 3 Maine 6/96-5/97 3 Missouri 1/96-12/96 3 Nebraska 1/96-12/96 3 New Mexico 1/96-12/96 3 Oklahoma 1/96-12/96 3 Oregon 1/96-12/96 3 Utah 1/96-12/96 3 Virginia 2/96-1/97 3 Washington DC 4/96-3/97 2 Indiana 1/96-12/96 2 Iowa 3/96-2/97 2 Kansas 1/96-12/96 2 Kentucky 1/96-12/96 2 Maryland 4/96-3/97 2 Michigan 4/96-3/97 2 New Hampshire 4/96-3/97 2 Rhode Island 1/96-12/96 2 Vermont 4/96-3/97 2 Alaska 4/96-3/97 1 Arizona 3/96-2/97 1 Idaho 3/96-2/97 1 Minnesota 1/96-12/96 1 Hawaii 1/96-12/96 * Massachusetts 7/96-6/97 * Source: National Council on Compensation, Annual Statistical Bulletin, 2000 Edition. A24 * = less than 1 per 100,000 workers WCRI FLASHREPORT September 2001 FR Page 9 of 11

10 The evidence is also consistent with similar behavior with respect to future supplemental income benefits that are paid to certain workers when impairment benefits expire. Eligible workers are those with impairments of at least 20 percent who have not recovered at least 80 percent of their pre-injury earnings and who have made a good faith job search. Settlements involving claims with impairment benefits could include some amounts for possible future supplemental benefits. The principal lessons from this study for the Senate Banking and Insurance Committee, who requested this analysis, are that: Statutory impairment benefits are low in Florida, but that actual payments for impairment are not necessarily low. Since Florida is not a low impairment benefit state, based on actual payments, legislative action to change impairment benefits should be guided by an understanding of why this occurs despite the low statutory impairment benefits. Further study is needed to determine this. This study could not rule out the speculation that payments of permanent impairment benefits include a premium for the possibility that the worker might receive PTD payments. Additional study might provide a stronger conclusion and identify system features, incentives and behaviors that might cause this, if it is occurring. APPENDIX: METHODS AND DATA We compared statutory permanent partial disability (PPD) indemnity benefits for a single worker, age 39, with an average weekly wage of $400 and $800 in Florida with nine other large states that rate PPD benefits according to impairment (Colorado, Connecticut, Georgia, Illinois, Indiana, New Jersey, North Carolina, Texas and Washington). The results would not be materially different for older or younger workers. Here we assume that the AMA Guides (4 th edition) was used to rate all impairments. We used the benefit formulas, including the maximum and minimum weekly amounts, in effect in the states as of January 1, 2001 to calculate PPD benefits. All amounts are expressed at present value (discounted at 6 percent) of the benefits owed and they are paid in weekly amounts according to the statutory rules for payment. Making meaningful comparisons of statutory benefits in Florida with other states requires care for several reasons. First, actual implementation of statutory formulas may vary based on such factors as interpretation by judges, settlement behavior of the parties, and particularly in Florida, the prospect that a worker may be awarded PTD benefits. Second, not all states share the same basis for rating impairment benefits for limb injuries. For example, unlike Florida and Texas, which rate losses as a percentage of the body as a whole, the other eight states provide a schedule containing a maximum number of weeks of impairment benefits for certain body parts (such as limbs). Typically, the back is not included in the schedule. Such a nonscheduled loss is typically rated according to a percentage of the body as a whole. Finally, not all states use a guide when rating impairment, or if they do, they do not use the same guide. 5 And rating behavior of medical providers also varies, within and among states. Thus, a 10 percent impairment rating, for example, may mean different things in different states, or in different parts of the same state because of difference in the ratings of individual physicians. We first compare the statutory benefits awarded for a back injury with impairment ratings of 2, 4, 8, 12, 16, 20, 40 and 50 percent. Then we compare injuries to various limbs. See the notes to Figure 2 for the specific injuries analyzed. Evaluating these losses may involved similar variability since they involve a partial loss of use and different raters may arrive at different ratings for similar injuries. The data on actual benefits paid for impairment come from the WCRI Detailed Benchmark/Evaluation (DBE) database. The database contains reasonably representative data on each of the states claims from the voluntary insurance market, self-insurers, state funds and the residual market. It typically represents 30 to 50 percent of the claims in the state. Moreover, we use the CompScope methods to adjust for interstate differences in industry and injury mix, waiting periods and 5 Florida uses the Florida Impairment Rating Guide. Colorado uses the AMA Guides 3 rd Edition. Connecticut, Georgia and Washington use the AMA Guides 4 th Edition. California and North Carolina use their own guides. Texas uses the AMA Guides 3 rd Edition 2d printing. Indiana requires the use of the AMA Guides (latest edition), New Jersey and Illinois do not require that a guide be used. WCRI FLASHREPORT September 2001 FR Page 10 of 11

11 wage levels. So the amounts reported here are the amounts that similar workers would receive for similar injuries in each state. Although not perfect, these are the most meaningful interstate comparisons available. For further information about the CompScope methods, see the technical appendix to CompScope Benchmarks: Multistate Comparisons, Cambridge, MA: Workers Compensation Research Institute. WCRI FLASHREPORT September 2001 FR Page 11 of 11