Coverage provided to workers who are injured on the job is invaluable and is, primarily, via workers compensation protection. Such protection is framed by the Workers Compensation Act which addresses payment for medical treatment and disabilities. It also replaces, largely, the need for injured workers to have to sue their employers for compensation.
However, the nation’s workers compensation system has a lot of concerns including the following:
- Viability of Workers’ Compensation
- Affordable Care Act
- Holes in Workers’ Compensation
- Blurred lines between Workers’ Compensation and group health
- Options to Workers’ Compensation
- Evolving claims model
- Pending Court Challenges regarding coverage
Workers compensation has traditionally been called the Grand Bargain precisely due to workers sacrificing a right to sue employers in place of the ability to depend on fair compensation when injured on the job. However, as is evident from the long list of issues, a number of important players are dissatisfied with the system. Insurers believe that it is plagued by arbitrarily high treatment costs and fraud. Legislators believe that it is inefficient and acts as a disincentive from business growth. Businesses see it as a burden that hampers profitability and substantially increases payroll expense.
Problems with proper worker protection are likely to increase as employers increasingly ignore the need to buy workers compensation coverage, even though it means breaking laws, facing fines and even criminal penalties. Yet, instances of absent or insufficient coverage persists due to increased use misclassified employees, manipulation of submitted payroll information, abuse of worker contractual agreements and other abuses. The increase presence of sharing economy workers also complicates matters.
If you have employees, it is imperative to seek out an insurance professional to assist you with fulfilling your protection obligations.