Inflation Won’t Impact Workers’ Comp

Workers’ comp can absorb economic challenges 

  • The steep growth in consumer prices for energy, food, and housing over the last few years created concerns about potential rising inflation in medical care.
  • A new WCRI study found that, overall, there was no evidence of faster growth in workers’ comp medical prices and payments in most states over the high inflation period of 2021-2022.
  • While consumer inflation overall and for major consumption categories such as energy, food, and housing was substantial in 2021-2022, price increases in the medical sector were not a main driver.
  • The major contributor to price increases in the general healthcare system was the growth in hospital payments. Similar patterns were found in workers’ compensation.
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Dog bite leads to workers’ comp case

  • The Pennsylvania Supreme Court issued a decision that safeguarded the Workers’ Compensation Act’s exclusivity provision in a third-party action.
  • The plaintiff-respondent, Lindsay Franczyk, was working at a Home Depot store when a customer’s dog bit her.
  • She immediately reported the bite to her supervisors, who were named as defendants in the subsequent lawsuit, along with Home Depot).
  • The third-party complaint alleged that the defendants barred Franczyk from any contact or interaction with the dog owner or any witnesses.
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Miami construction firm owner arrested for fraud

  • Hector Gutierrez-Morales, owner of HG & AKE Construction, was arrested for workers’ comp fraud for allegedly concealing company payroll amounts to avoid higher premiums for required workers’ compensation insurance coverage.
  • In 2018, Gutierrez-Morales applied for workers’ compensation coverage with Traveler Property Casualty with an estimated annual payment of about $161,000.
  • Based on the provided information, a traditional policy was issued with an estimated annual premium of approximately $28,000. Gutierrez-Morales proceeded to renew the coverage for two additional years with increases in the estimated annual payroll.
  • Gutierrez-Morales, on behalf of HG & AKE Construction Corporation, failed to notify his insurance company of significant annual payroll changes.
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Worker killed after roof collapses

  • A construction worker was killed when a roof collapsed at a building in Nassau County, New York.
  • Two construction workers were erecting a roof to a new building when the structure began to collapse.
  • One worker, a 49-year-old Roosevelt man, was pinned against a wall by the collapsing roof.
  • It took emergency responders, fire officials and private crane operators six and a half hours to free him. He was pronounced dead at the scene.
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