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Worker's Compensation Insurance Details:

  • Description: Workers' Compensation (commonly referred to as Workman's Comp) is a form of insurance that provides wage replacement, medical benefits, and rehabilitation support to employees who are injured or become ill due to their job. This system is designed to ensure that workers are supported financially and medically without requiring lengthy legal disputes.
  • Federal Statute: Federal Employees' Compensation Act (FECA); Longshore and Harbor Workers' Compensation Act (LHWCA); Black Lung Benefits Act (BLBA); Defense Base Act (DBA); Energy Employees Occupational Illness Compensation Program Act (EEOICPA); Federal Coal Mine Health and Safety Act (partially overlaps with BLBA)
  • State Statute: Each state has its own statutes governing workers' compensation for private sector employees. While federal statutes do not directly govern these, states are influenced by federal standards for workplace safety under: Occupational Safety and Health Act (OSH Act).
  • Compliance Body: Each state has a workers' compensation agency or board responsible for administering the state's workers' compensation system.
  • Beneficiary Trends: In 2025, the workers' compensation insurance premiums are projected to total around $55-60 billion annually across the U.S. The exact number of beneficiaries for 2025 isn't specified, but for context, in 2023, there were approximately 1.3 million workers' compensation claims reported. The average workers' compensation insurance cost per employee in 2025 is about $94 per month. (Source: National Council on Compensation Insurance (NCCI))
  • Fraud Issues: Workers' compensation fraud is a significant issue. While exact fraud rates for 2025 aren't provided, the National Insurance Crime Bureau (NICB) estimates that workers' compensation fraud could account for 10% to 30% of claims costs in some states. If we take a conservative estimate of 10%, 10% of $55-60 billion would be $5.5 to $6 billion potentially attributed to fraudulent activities. (Source: Posts on X)