How U.S. Workers’ Comp Measure Up to Other Nations

May 23, 2023

Nation’s workers’ comp system differs from rest of world

  • The U.S. has a well-developed workers’ comp system, but helpful to compare it with systems in other countries to gain insight into alternative approaches.
  • In countries such as Canada, Australia, and most European nations, workers’ compensation is typically provided under a universal healthcare system.
  • This means that all employees, regardless of the employer’s size, are automatically covered for work-related injuries and illnesses.
  • European countries often provide more generous benefits in terms of wage replacement, rehabilitation services, and long-term disability comp.
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New York fraud unit making strides

  • The New York Inspector General released the 2022 Annual Report of the Workers’ Compensation Fraud Inspector General, which details efforts to eliminate fraud and improve the workers’ comp system.
  • Last year, there were 1,462 complaints – a 30% increase from the calendar year 2021.
  • There were 16 arrests following WCFIG investigations – double the number from 2021 with nine resulting in criminal convictions, with seven matters still pending
  • Almost $3 million in new workers’ compensation fraud in 2022.
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Massachusetts reaches settlement with CVS 

  • Massachusetts reached a $6.1 million settlement with CVS to resolve allegations that the pharmacy failed to follow state rules designed to keep costs down in the workers’ comp insurance system.
  • State regulations require that certain state and federal benchmarks be reviewed when setting prices for prescription drug charges under workers’ compensation insurance.
  • The settlement identified alleged failures concerning prescriptions filled at CVS locations in Springfield, New Bedford, Boston, and Worcester.
  • As part of the settlement, CVS agreed to work with the AG’s Office to help prevent overcharges.
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Iowa county settles workers’ comp case for eye injury

  • Polk County, Iowa, is paying $236,000 to settle a workers’ comp claim from a conservation employee who lost an eye while on the job.
  • Chance Patrick, a maintenance technician, was injured in December 2020 and was off for nearly 39 weeks before returning to work.
  • Patrick required surgery after the injury and the incident took a significant toll on his life, according to his attorney, John Lawyer, tells Axios.
  • Details of the accident have not been revealed.
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