To control your workers’ compensation costs, you need to know what’s happening in the workers’ compensation sector. Catch up on the latest workers’ compensation cases and news events with this roundup.
The Inflation Reduction Act Could Impact Workers’ Compensation
The Inflation Reduction Act has been signed into law and will impact many aspects of healthcare. Although many of the provisions are specific to Medicare, Risk & Insurance explains that some of the provisions could affect workers’ compensations costs. Developments to watch include changes to prescription drug prices, extensions of Affordable Care Act subsides, and caps on insulin costs.
Some of these changes could be beneficial for the work comp sector. For example, Property Casualty 360 explains that the ACA subsidies could prevent employees from filing claims for injuries that didn’t actually happen at work just because they need coverage.
Court Upholds $1.4 Million Workers’ Compensation Settlement
According to Property Casualty 360, the Pennsylvania Superior Court has upheld a $1.4 million settlement. Hartford Insurance Group had sought to reverse the settlement, which included $580,000 for the injured worker and $870,000 in a loss of consortium claim to the worker’s wife. The insurer said the injured worker circumvented subrogation. The ruling highlights the fact that Pennsylvania employers are not entitled to subrogate loss of consortium claims to the spouses of injured workers.
Exclusivity Provisions Prevent Worker from Filing Wrongful Termination Claim
Do exclusivity provisions found in workers’ compensation rules prevent workers from filing wrongful termination claims for dismissals related to their injuries? According to Business Insurance, a woman who was working for the Nebraska Department of Correctional Services was injured during required training. More than a year later, she was fired for allegedly failing to find a new position that could accommodate her. She claimed this violated the Americans with Disabilities Act (ADA) and the Nebraska Fair Employment Practice Act (NFEPA), but the ADA claim was dismissed and a state court granted the motion to dismiss the NFEPA claim on the basis of the exclusivity provisions in the Nebraska Workers’ Compensation Act. The Nebraska Supreme Court upheld this ruling.
Ohio Bill Addresses Work-from-Home Injuries
As more workers make working from home a permanent arrangement, the question of how injuries should be treated becomes more pressing. According to Property Casualty 360, a new workers’ compensation law will take effect in Ohio beginning on September 23, 2022. The law introduces exclusions and provisions that clarify when an injury that occurs while working from home is compensable.
States Debate the Future of COVID Presumptions
According to Insurance Business America, a new report from the National Council on Insurance Compensation (NCCI) shows that several states are looking into the future of presumptions that have made it easier for workers to file claims for COVID. Other legislative priorities in the workers’ compensation sphere include mental health injuries, the use of marijuana in claims, gig worker classification, and single-payer health insurance.
Workers’ Compensation Fraud Is Worth $32 Billion
According to the Coalition Against Insurance Fraud, workers’ compensation fraud leads to losses of $32 billion every year. Only some of this fraud involves workers misrepresenting injuries or receiving benefits from the wrong employer. According to the report, fraud committed by workers costs approximately $9 billion a year; the other $23 billion stems from fraud committed by employers – for example, by misclassifying workers.
Risk & Insurance says that new tactics are being used to fight fraud in workers’ compensation. These include the use of social media to gather information and AI to recognize patterns.
More Time Granted for Treatment Review
Business Insurance says Governor Newsom has signed a bill that will give the California Division of Workers’ Compensation more time to study to effects of fast-tracking certain medical treatments without utilization reviews. The new deadline is July 2023, meaning the change will allow the DWC to study two more years of data.
2014 Delaware Law Reduced Medical Claim Costs
In 2014, a new workers’ compensation law passed in Delaware in an attempt to cut costs. According to Insurance Journal, new research shows the law succeeded in reducing medical claim costs. Between 2014 and 2017, the average medical payment decreased by approximately 33 percent, and claim costs have continued to decrease.
Many Companies Are Overpaying
Now that you’re caught up on workers’ compensation news, it’s time to look at your own workers’ compensation coverage. Are you paying too much? See how easy it is to get a workers’ compensation premium recovery.
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