App Worker Bill Could Alter Premium Volumes

The Empowering App-Based Workers Act, introduced by Democratic Sens. Brian Schatz of Hawaii, Christopher Murphy of Connecticut, and Tammy Baldwin of Wisconsin, could have implications for workers’ compensation insurance.
The proposed bill addresses the classification of app-based workers.
The sponsors claim that companies such as Uber and DoorDash misclassify workers as independent contractors, which can reduce payroll expenses by up to 30%.
While the legislation focuses on transparency in pricing and pay equity for workers, the classification issue addresses insurance coverage and premium setting.
If the proposed legislation leads to changes in worker classification practices, it could impact workers’ compensation insurance markets by increasing covered payrolls, shifting classification patterns, and altering premium volumes across multiple industries.
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In an op-ed in our sister publication, Workers’ Comp Executive, J Dale Debber calls for California’s legislature to focus on the state’s Subsequent Injuries Benefits Trust Fund (SIBTF).
SIBTF is separate and distinct from California’s workers’ compensation system. It has generated some $26 billion in future liabilities and is piling on $3 billion in additional debt every year.
“It is time for it to demonstrate that it can rein in unnecessary and destructive costs that burden the business engine of our state,” he writes.
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Concentra said last week that second-quarter workers’ compensation revenue of $314 million was 8.9% higher than prior year.
The Addison, Texas-based operator of occupational health centers said WC visits per day were 3.2% higher and WC revenue per visit was 5.5% higher than Q2 2024.
In the period, patient visits totaled 3.52 million, or 55,005 visits per day, up 9.5% year-on-year.
Revenue per visit was $145.92, an increase of 4.4% from $139.81 in Q2 2024
The company said as of June 30, 2025, it was operating 628 occupational health centers, compared to 547 at the end of Q2 2024
Total onsite health clinics totaled 406, compared to 154 at the end of Q2 2024
The acquisition of Pivot on-site health clinics doubled the size of their on-site health clinic segment, enhancing their competitive position, the company said.
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West Virginia Gov. Patrick Morrisey has announced a proposed premium reduction for the workers’ compensation program, based on the National Council on Compensation Insurance (NCCI) filing for a loss cost decrease of 13.5%.
This would be effective on Jan. 1, 2026.
According to the Governor’s Office, the reduction will result in a projected $20 million in savings for West Virginia employers.
“From the start, my administration has been focused on attracting more jobs and businesses to the Mountain State,” said Governor Morrisey. “The projected savings on premiums for workers’ compensation insurance helps cut costs for the state’s employers and any companies looking to move or expand into West Virginia.”
This latest filing represents the 21st consecutive year of loss cost decreases and accounts for a cumulative 84.9% reduction from pre-reform workers’ compensation levels, according to reports.
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