COVID workers' comp claims grew 'noticeably' in Q2 2020
While COVID-related claims were up, non-COVID-related claims fell by as much as 30% for most states compared with 2019.
During the second quarter of 2020, COVID-19 related workers’ comp claims grew “noticeably” across the U.S., according to the Workers Compensation Research Institute (WCRI), with a median increase of 6%.
WCRI study 27 states workers’ compensation claims for the first two quarters of 2020 to derive these results.
Although there was an increase in these types of claims, the percentage of COVID-19 claims among paid claims fluctuated widely between states during the period, WCRI reported. For example, Kansas’ rate was around 1%, while Massachusetts hit 42%.
The institute noted the pay-out findings were in line with interstate differences in the severity of outbreaks; changes in the volume of non-COVID-19 workers’ comp claims; variations in the percentage of COVID claims in the healthcare industry; and compensability rules, claims reporting requirements and presumptions laws.
How presumptions impacted claims paid
Concerning the final point, John Ruser, WCRI president and CEO, said states with presumption laws tend to see higher fractions of COVID-related claims.
“But we caution that the relationship might be reversed. That is, states with more COVID-19 claims might have been more likely to pass presumption laws,” Ruser explained.
While this was typically how it played out, it is important to note the WCRI study found the state with the highest fraction of COVID-19 claims, Massachusetts, did not have a presumption rule.
WCRI noted Massachusetts workers’ comp system has a “pay without prejudice” feature, which in effect for the initial 180-day period and might have resulted in the state’s high frequency of paid COVID-19 claims.
Non-COVID claims fell
During the first quarter of 2020, non-COVID-related claims had started to decline across all states, a trend that gathered more traction through the subsequent period, according to WCRI research. The vast majority of states saw declines of at least 30% and reached as high as 50% in the case of Massachusetts.
Ruser anticipates that as more of the population gets vaccinated and returns to work, the number of workers’ comp claims would increase.
“A question that we cannot answer is whether there will be more working from home in the post- COVID time period and how that might affect both the number of claims, as well as the types of claims,” he said.
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