It seems COVID-19 workers’ compensation presumptions might not be as catastrophic to the system as insurers have previously warned.
“While COVID-19 presumption laws are gaining a lot of attention in the news, claims from injured workers who have contracted the disease aren’t likely to have a huge effect on workers’ compensation costs.”
That’s a brief excerpt from a piece published by Risk & Insurance Magazine on their website on July 23. The crux of the article is a recent survey of payers and providers conducted by Health Strategies Associates, a national health industry consulting firm, seeking feedback on how insurers see COVID-19 impacting the industry.
“When it comes to COVID-19 claims, the report found that they are typically inexpensive. One survey respondent estimated that 96% of claims cost less than $3,500.”
What happened to the doom and gloom and $30+ billion cost estimates for these claims? It was just a bunch of smoke and mirrors to protect their bottom line.
Insurers have been fighting tooth and nail to prevent the enactment of COVID-19 workers’ compensation presumptions to protect essential employees who continue to put their lives on the line for the benefit of everyone.
The legislature and Governor Newsom should ignore any “doomsday” scenarios perpetuated by these big business entities when considering a new or extended presumption for essential workers.
Insurers are still sitting pretty and are well-healed enough to weather the crisis. Millions of essential workers are not.