The Early Impact of COVID-19 on Workers’ Compensation Claim Composition

By Olesya Fomenko, John Ruser

January 14, 2021 Related Topics: COVID 19

This study addresses how the massive slowdown of economic activity early in the pandemic impacted workers’ compensation, and to what extent COVID-19 claims have arisen in the workers’ compensation system. 

The report will shed some light on the early impact of the COVID-19 pandemic on workers’ compensation and help policymakers and stakeholders track changes in key dimensions of the effect of COVID-19 on workers’ compensation.

The study analyzed claims for private sector workers and local public employees covered by workers’ compensation with paid medical and/or indemnity benefits in 27 states by comparing the first two quarters of 2020 and 2019 to understand the early effects of the pandemic on workers’ compensation.

The 27 states in the study are Arizona, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and Wisconsin.

The Early Impact of COVID-19 on Workers’ Compensation Claim Composition. Olesya Fomenko and John Ruser. January 2021. WC-21-01.

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Research Questions:

  • How did the percentage of COVID-19 claims among all claims compare across states early in the pandemic? What factors are behind this variation?
  • What was the industry composition of COVID-19 workers’ compensation cases?
  • How did the number of workers’ compensation claims change in the first two quarters of 2020 as compared with the same quarters in 2019? What might be driving variation in the non-COVID WC claim changes across states?
  • Did the composition of industries and injury types for non-COVID-19 workers’ compensation claims change?
  • Did the share of lost-time claims (those with more than seven days away from work) among all non-COVID-19 claims and all claims (including COVID-19) change with the pandemic?

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