Economic theory and evidence indicate that workers, employers, and hea
lthcare personnel respond to the incentives built into state workers'
compensation systems, Although empirical studies cannot provide precis
e estimates of the quantitative effects resulting from specific policy
changes, research is useful in evaluating the qualitative effects of
alternative policies, Studies show that workers' compensation claims a
re higher the more generous the level of benefits, the shorter the wai
ting period, and the more readily available is information on benefits
to workers, States that decrease real benefit levels and lengthen the
period required before workers are compensated for lost earnings can
constrain future growth in workers' compensation costs, while continui
ng to provide partial compensation for workers with the most serious i
njuries, The most difficult problem facing policymakers is to design a
nd implement reforms that take into account what are often the incompa
tible incentives of workers, employers, and medical care providers.