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The “Unknown” occupational disease risk in workers’ compensation When workers’ compensationsystems started a century ago, the focus was “industrial accidents”. page U47] Over time, most workers’ compensationsystems adapted to include coverage for occupational diseases. This limitation was noted at the time.
As 2023 draws to a close and companies begin to settle on the wages and hikes for the next year, the question of how to create an equitable compensationsystem might flash in everyone’s mind—if briefly. Building a conscious pay system requires conscious policies and practices that support such an initiative.
Background The workers’ compensationsystem faces an enormous challenge in 2022 as the novel consequences of the most recent surge of SARS-CoV-2 infection engulf the nation. The issues will include: evaluating temporary disability benefits, delivering medical treatment, and estimating the nature and extent of disability.
“The Division didn’t follow through on most of what it said it would do,” said Kevin Walsh, Acting State Comptroller. As of now, the risk of fraud, waste, and abuse in New Jersey’s workers’ compensationsystem remains unacceptably high.”
There was no Americans with Disabilities Act, no FamilyMedicalLeaveAct, and even the ground-breaking Title VII of the Civil Rights Act of 1964 was not even a decade old. First, the National Commission was enabled by the same law that created OSHA, the Occupational Safety and Health Act of 1970.
The apparent rise in mental disability claims is a significant issue for disability insurers and workers’ compensationsystems. The observed rise in workers’ compensation claims for mental injury must be interpreted in context. Bill 49, Workers Compensation Amendment Act, 2002 contained a provision for “mental stress” claims.
Requiring employers provide financial compensation to workers or their families for work-related injury, illness and death is central to achieving this objective. This category includes state fund insurers that act as the “insurer of last resort” within the jurisdiction. There are no jurisdictions with competitive state funds.
Stakeholders Face Challenges The numerous stakeholders of the workers’ compensationsystem have been repeatedly faced with episodes of increased infectious disease, and little has been done to take the necessary precautions against the hazardous consequences. Work has changed dramatically to remote and non-industrial in many instances.
For workers’ compensation insurers, there are additional complications in their day-to-day operations. The medical and rehabilitation services often provided by workers’ compensation typically are very “hands on”. The degree to which this challenge may impact particular insurers remains to be seen but the risk is real.
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