Dr. Hartwig said of these, most have endured significant physical, emotional and psychological hardships. More than 2,200 have died and well over 16,000 have been injured in Iraq alone.

He observed that relevant from a workers' comp perspective are the challenges tens of thousands of injured service men and women and their employers will face when they rejoin the civilian workforce.

Reintegration of the physically and psychologically impaired will likely present unexpected challenges to a generation of employers with no experience in dealing with such large numbers of returning veterans, he said.

Large numbers of military personnel are physically wounded each month in Iraq. From the beginning of Operation Iraqi Freedom in March 2003 through January 31, 2006, a total of 16,598 military personnel had been physically wounded in action, an average of 474 per month.

The issue of reintegrating veterans back into the social and economic fabric of America is not new. After World War II, despite programs like the “G.I. Bill” and government assistance with employment, home mortgages and health care, hundreds of thousands of physically injured veterans faced special challenges and even discrimination in the workplace.

In response, many states established “second injury funds” (SIFs). SIFs allowed employers (and their insurers) to cede costs of injuries that were principally the result of a worker's prior injury to a statewide plan that would redistribute those losses across all employers (insurers) in the state, according to Mr. Hartwig. Effectively, SIFs functioned as reinsurers of second injury claims.

However, Mr. Hartwig noted, the number of second injury funds has declined in recent years, with states reasoning they are no longer needed since the enactment of the Americans with Disability Act in 1990, which not only prohibits discrimination against disabled employees but also requires employers to make reasonable accommodations for them in the workplace.