This study compares medical costs in Minnesota1s workers1 compensation system to workers1 compensation medical costs in other states. Medical coverage in the workers1 compensation system is virtually the same in all states. If we assume workers in each state had similar injuries, the amount and type of medical care should be approximately the same in each. Under these assumptions, observed differences in medical costs could occur for a number of reasons. Among them are interstate differences in average medical costs, worker demographics and workers1 compensation systems.