08/17/2026
Most business owners know that workers' compensation medical costs matter. But what, exactly, is driving those costs in 2026, and how does that impact workers’ comp claims?🏥
Some cost categories are holding steady right now:
-Physician care, the largest share of workers' comp medical expenses, has seen modest growth
-Prescription drug prices have actually declined slightly in recent months
But other categories are climbing fast:
-Hospital inpatient costs are rising at nearly double their pre-2020 average
-Medical equipment and supply prices spiked in early 2026, a trend linked to new tariff-related cost pressures
-Long-term care costs, including home health and nursing care, are running at more than twice their historical pace
The employers who are managing this shift well are the ones who report claims promptly, support return-to-work programs and stay in close contact with their agent at renewal.