Industry Issues | Workers Compensation

Workers Compensation

Balance Critical to Workers Compensation Systems

Workers compensation insurance provides medical and monetary benefits for workers who are injured or become ill on the job. State workers compensation systems are designed to balance the interests of injured employees who need medical care and replacement income and employers that seek a predictable and insurable cost structure to accommodate employees' needs.

PCI supports proposals that are fair to all stakeholders and carry out the primary goal of workers compensation, which is to provide injured workers the best care available, so they can return to work as soon as they are able and continue to be productive members of our society.

Workers Compensation Trends


Medical Costs

Escalating medical costs, which represent nearly 60 percent of total workers compensation losses, are disrupting the balance in many workers compensation systems. As a result, states are searching for ways to control medical costs. The following factors are contributing to escalating medical costs:
  • Increases in the number of treatments per claim
  • Medical cost inflation
  • Volume of prescriptions being written by physicians
  • Over-prescribing of narcotic drugs
  • An aging workforce
  • Medical technology

Legislative Trends

PCI is prepared to work with the business community to address a wide variety of workers compensation issues ranging from very specific improvements to defending against measures that would increase costs to considering reforms that would encourage competitive marketplaces.