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City report shows rise in workers' compensation claims; mental‑health claims growing
Summary
The city's FY25 workers' compensation report shows reported injuries and claims rose (claims +14%, incident notifications +19%), with mental‑stress claims increasing; the city is self‑insured up to $5 million per claim and staff recommended early reporting, wellness initiatives and training to mitigate costs.
City risk management staff presented an update on the fiscal year 2025 workers' compensation program at the Feb. 25 meeting, reporting increases in reported injuries and new claim costs and flagging mental‑stress claims as a growing driver of cost and volume.
Adria White, the city’s risk manager, said FY25 saw a 14% increase in accepted claims, a 19% increase in incident‑only reports and a 15% increase in total reported injuries compared with FY24. The top three departments for claim volume were police, fire and maintenance/operations, which White said is consistent with national patterns given those job functions’ higher exposure to on‑the‑job risk.
White said the city operates a self‑insured workers’ compensation program that retains risk up to $5 million per claim; excess insurance covers costs above that threshold. She said new‑claim costs and ongoing liabilities have increased and highlighted several drivers: rising medical costs, a larger workforce, and recent legislative changes that broaden certain coverage (for example, cumulative‑event definitions for stress claims). The FY25 denial rate for claims was about 9.7%.
To reduce liability, staff recommended emphasizing early reporting and near‑miss reporting, expanded training (particularly to identify and respond to mental‑health/stress injuries), and wellness initiatives. Council members asked for follow‑up on prevention measures, tracking mitigation efficacy and any additional resources the program needs to reduce long‑term claim costs.
No formal council action was required; staff said the report will inform the March budget workshop and future mitigation planning.
