Workers’ Compensation – Changes and Challenges in the Era of Covid-19


Changes and Challenges Affecting the Workers’ Compensation Landscape

Covid-19 continues to present workers’ compensation payers and providers with changes and challenges the effects of which may linger well into 2021. To help the major players share information and advance efforts to manage a rapidly evolving situation, Health Strategy Associates, LLC, recently conducted a survey of 35 respondents comprising workers’ compensation payers and service providers.

Key Findings

  1. Payers expect total claims to decrease by 20% for the entire year.
  2. Payers accepted fewer covid related claims than non-covid (lack of testing and asymptomatic presentation were factors)
  3. Covid related claims were generally not expensive

The Biggest Worry is Premium Reductions

Overwhelmingly, the biggest concern going forward is premium reduction. As businesses remain closed for longer periods, staff are furloughed or laid off and fewer people are covered by workers’ compensation benefits.  For payers this means inevitable loss of premium revenue.

The trickle down effect means a rocky road ahead for adjusters and claims professionals. As claim numbers also fall, TPAs will need to source other ways to generate revenue.

Survival Strategies for the Future

The future will favor those entities and individuals who are responsive to evolving scientific data and nimble enough to change. Best outcomes will require:

  1. Flexibility
  2. Willingness to try new things even if they depart radically from former practices
  3. Ability to change practices when it becomes obvious they no longer work
  4. Willingness to embrace reality that some efforts fail and that is ok.
  5. The key is ability to adapt because the only thing worse is not trying new things to adapt to a very different world.

For a deeper dive into the survey, visit the Health Strategies LLC website.

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