Will My Workers’ Compensation Go Up In Response to Inflation?
From the gas pump to the checkout line at the grocery store, rising costs of essential goods and services are hitting household budgets hard. People from all walks of life are feeling the pinch of inflation now more than ever.
According to the U.S. Bureau of Labor Statistics, the inflation rate for the U.S. is currently at 2.9%, based on the Consumer Price Index (CPI) for August 2025. Medical inflation, which measures the rise in healthcare costs over time, typically exceeds overall economic inflation and stood at 3.45% in September 2025.
A 2025 study from the Workers Compensation Research Institute (WCRI) examined how inflation and state fee schedule update methods have influenced the growth of medical costs in workers’ compensation since 2020. The study found that while general healthcare prices rose steadily at about 3 percent annually, workers’ compensation payments showed greater variation across states.1
Inflation has a significant impact on workers’ compensation, influencing everything from claim frequency to the overall cost of benefits. In Illinois, rising medical expenses and wage inflation are driving up the value of workers' compensation payouts, particularly for long-term claims. While most benefit rates are locked in at the time of injury, certain payouts, such as permanent total disability and death benefits, receive annual cost-of-living adjustments.
At Black & Jones, we’ve spent decades fighting to make sure hardworking individuals like you get the compensation and support they deserve. Advocating for injured workers isn’t just what we do—it’s our mission. If you’ve been injured at work, contact us today at (815) 967-9000 or fill out our online form to schedule a free consultation.
1 Workers Compensation Research Institute, “Post-Inflation Trends in Medical Payments Through 2025—A WCRI FlashReport,” June 2025.