Why Are Workers’ Comp Costs Rising?

Despite a slowdown in general inflation, the cost of workers’ compensation has continued to climb, surpassing pre-pandemic levels. According to experts from the Workers Compensation Research Institute (WCRI); several factors are driving this increase, with changes in medical care utilization and service mix at the forefront.

First, one key issue is the ongoing shortage of healthcare workers, particularly in nursing, which has pushed up labor costs. As a result, workers’ compensation payments have risen, reflecting the higher expenses associated with medical care.

Also, medical fee schedules, which are used in 44 states and Washington D.C., play a crucial role in controlling costs. However, these schedules vary in how frequently they are updated. Twenty-six states adjust their fee schedules annually, while others do so less often, which can lead to discrepancies in cost management across states.

Furthermore, medicare fee schedule changes also contribute to rising costs in the workers’ compensation sector. Therefore, adjustments for hospital and facility payments, including services at ambulatory surgery centers, have led to increased pricing.

Conversely, the pandemic initially caused a dip in the utilization of medical services within workers’ comp; but these levels have since rebounded, adding further pressure on pricing. As inflation in the broader economy starts to stabilize, the workers’ compensation sector may lag behind, continuing to experience higher costs.

To sum up, understanding these dynamics is essential for stakeholders aiming to manage and mitigate the financial impact on workers’ compensation systems.

Protecting Employee Rights When Employers Minimize Compensation

When an employer attempts to minimize compensation after a workplace accident, the rights of the injured worker may be at risk. 

In such situations, seeking legal representation from an experienced lawyer becomes essential to ensure you receive the full benefits you are entitled under workers’ compensation laws. Marshall P. Whalley and Associates is a law firm operating in various Indiana cities that may provide you with personalized guidance according to your case.

Firstly, your lawyer will ensure to file your claim is properly with all necessary documentation. Frequently, this includes medical records, witness statements, and any other evidence that substantiates the claim. Proper documentation is crucial, as employers or their insurance companies may attempt to dispute the extent of the injury or the circumstances of the accident.

If an employer disputes the claim, a lawyer can advocate on your behalf during negotiations or hearings. This may involve challenging any improper denials of benefits or lowball settlement offers. Attorneys understand the tactics that employers and insurers use to reduce payouts and can counter these strategies effectively.

In cases where an employer retaliates against you for filing a claim, such as by demotion or termination, a lawyer can take legal action to protect your rights. Retaliation is illegal, and workers are entitled to seek compensation for any additional harm caused by such actions.

Overall, your attorney will ensure to follow all legal procedures while advocating for fair treatment. Your lawyer plays a crucial role in securing the compensation that you deserve and protecting your rights throughout the process.

Firm contact info:

Marshall P. Whalley and Associates, PC

51 W 112th Ave., Crown Point, IN 46307

855-442-7211

[email protected]

www.marshallslaw.com