Navigating Workers' Comp Claims Amidst COVID-19: Challenges and Opportunities

The Initial Impact of COVID-19 on Workers' Compensation

Initially, the impact of COVID-19 on workers' compensation claims was not as severe as initially feared. According to the National Council on Compensation Insurance (NCCI), as of the second quarter of 2020, COVID-19 medical claims accounted for only about 200 out of every 100,000 active workers' comp claims, depending on the jurisdiction.

Uncertainties and Concerns for Workers' Compensation

Despite the relatively low initial impact, the pandemic presents uncertainties and concerns for workers' compensation, similar to many other sectors. NCCI's annual survey found that COVID-19 was the top concern of workers' compensation executives going into 2021. Executives worry about the duration of the pandemic, the potential size and number of claims, recovery time for workers sickened by COVID-19, and whether there would be long-term needs or lasting adverse effects.

State Compensability Presumptions and Future Implications

Executives also mentioned state compensability presumptions that have arisen during the pandemic. These presumption rules, passed by various states, say that COVID-19 infections in certain workers are presumed to be work-related and covered under workers' compensation. This presumption places the burden on the employer and insurer to prove that the infection was not work-related, making it easier for those workers to file successful claims. The executives surveyed by the NCCI expressed concern about the variations developing across states and the complexity of legislation and regulations that adds to the challenge of the rapidly evolving environment. Several noted issues and questions related to reinsurance for presumptive claims. Others are anticipating that compensability presumptions for contagious diseases, such as those instituted for COVID-19, will be widely adopted and permanently enacted or even expanded, in some cases, to include other common diseases.

In conclusion, while the immediate impact of COVID-19 on workers' compensation claims has been relatively low, the long-term implications and uncertainties remain significant. Executives and stakeholders in the workers' compensation industry must stay vigilant and adaptable to navigate the evolving landscape. For readers, it is crucial to stay informed about the latest developments in workers' compensation laws and regulations, particularly those related to COVID-19 and other potential future pandemics.