Workers’ compensation claims are climbing faster in home health services and skilled nursing facilities than in other parts of healthcare, a new analysis from the National Council on Compensation Insurance (NCCI) shows. The report, released Nov. 12, points to higher claim frequency and rising costs that could push premium rates up for healthcare employers in 2026.
Drawing on data from dozens of states, NCCI found that home health claims increased an estimated 15% to 20% year over year from 2023 to 2025, while skilled nursing facility (SNF) claims rose about 10% to 12% annually over the same period. The trends reflect ongoing workforce strains, an aging patient population, and persistent safety risks for frontline caregivers.
Home health leads the surge
According to the report, the steepest increases are in home health. Average lost-time claim costs there now range from roughly $45,000 to $60,000 per claim, up about 8% from 2024. NCCI links the jump to musculoskeletal injuries tied to patient handling and movement, which make up the majority of cases, and to a smaller but notable share related to verbal or physical assaults in the home.
Analysts point to rapid workforce growth and uneven training as contributing factors. Many aides work alone in uncontrolled environments—narrow hallways, stairs, and low lighting—where slips, trips, and overexertion are common. Recovery periods are also lengthening, adding to indemnity and medical costs.
SNFs face steady, rising costs
Skilled nursing facilities are seeing a steadier, though still significant, climb. Average claim costs range from about $35,000 to $50,000 per lost-time claim, up roughly 6% from last year. Most injuries stem from resident transfers and other high-exertion tasks, while mental health–related claims, though still a small share, are edging higher amid burnout and staffing stress.
NCCI notes that lifting equipment and safe patient-handling programs continue to reduce injury rates in facilities that adopt them. However, implementation remains uneven—especially in rural areas where staffing is thinner and budgets are tighter.
Premium pressure coming in 2026
Based on these trends, NCCI projects overall workers’ comp premium rates for healthcare employers could rise 5% to 7% in 2026, with home health and SNFs facing the largest increases—potentially up to 10% in some cases. That outlook arrives as operators also contend with wage inflation, continued staffing shortages, and reimbursement headwinds.
NCCI’s medical cost tracking shows elevated inflation for services commonly associated with injury treatment in home health, outpacing broader healthcare averages. If those pressures persist, the report cautions, premiums could continue to trend higher beyond next year.
Risk factors—and what can help
The analysis highlights several risk drivers: an expanding and often part-time workforce, frequent patient handling, and variable training in decentralized settings. For SNFs, an aging caregiver workforce compounds strain and injury severity. For home health, working alone in patients’ residences introduces safety and environmental risks that are harder to standardize.
To blunt the trend, NCCI recommends preventive steps that many operators already recognize but have struggled to scale. Those include stronger ergonomics and lift-assist programs, more consistent onboarding and refresher training, and early reporting protocols to prevent minor strains from becoming costly claims. The report also points to the use of tele-rehabilitation and nurse triage lines to speed care and shorten claim duration, as well as analytics to target high-risk tasks and units.
Why it matters for long-term care
Workers’ comp costs flow directly into operating budgets and staffing decisions. For home health agencies expanding to meet demand, higher premiums could force difficult trade-offs on scheduling and benefits. For SNFs, especially smaller and rural facilities, sustained increases in claim frequency and severity may strain already thin margins.
What to watch next: 2026 rate filings from carriers, adoption of safe patient-handling equipment and training, and whether state-level reforms or incentives emerge to support prevention. NCCI’s takeaway is clear: without a sharper focus on safety and early intervention, the comp pressures facing home health and SNFs are likely to intensify.
