Navigating the Complex Landscape of Workers' Comp COVID-19 Expansions

State Workers' Compensation Boards Expand Coverage Amidst COVID-19

Workers' compensation boards across the United States are modifying their rules to accommodate the unique challenges posed by the COVID-19 pandemic. Several states have already expanded or are considering broadening access to workers' comp coverage for COVID-19 beyond traditional first responders and healthcare workers. For instance, Kentucky and Illinois have issued emergency orders to include public-facing essential workers such as grocery store employees, pharmacists, postal service workers, and daycare providers. Meanwhile, Minnesota's legislature unanimously passed a bill guaranteeing workers' comp coverage for high-risk job holders who contract COVID-19, without requiring proof that the infection was job-related.

The Impact on Workers' Comp Industry

While these expansions are welcomed by employee groups and unions, they pose significant challenges to the workers' comp industry. Robert Hartwig, a clinical associate professor at the University of South Carolina, warns that these changes could place an 'enormous and unfair burden' on workers' compensation insurers. The difficulty in proving that a communicable disease was contracted on the job adds to the potential financial strain on insurers and large employers who are either highly deductible or self-insured. According to a recent study, the estimated cost of COVID-19 claims could reach billions, significantly impacting state funds and private insurers alike.

Balancing Employee Protection and Industry Sustainability

The debate over expanding workers' comp coverage for COVID-19 highlights the need for a balanced approach that protects employees while ensuring the sustainability of the workers' comp industry. Policymakers must consider the long-term financial implications and explore alternative solutions, such as federal aid or risk-sharing mechanisms. For employees, understanding their rights and the potential limitations of expanded coverage is crucial. It is recommended that workers consult with legal experts and stay informed about legislative updates to navigate this complex landscape effectively.