How Inequality Is Worsening Workers’ Compensation Recovery | Insurance business America
“Struggling to pay bills does not help rehabilitation”
Workers comp
By Nicole Panteloucos
In the busy world of workers’ compensation designed to put recovery on a straight path, income inequality casts a long shadow.
As the gap between the haves and the rest widens, the ability of injured workers to fully recover is increasingly determined not only by the severity of their injuries, but also by their bank accounts.
From delayed treatment to limited access to healthcare, socioeconomics shape the path to recovery in ways that are often overlooked in broader policy discussions.
A closer look at the workers’ compensation landscape reveals a trend toward fewer claims overall, but the actual claims that do occur are of a higher severity.
This shift suggests that while workplaces are becoming more effective at preventing minor injuries, the incidents that actually occur tend to result in more serious or complex illnesses.
Jennifer Cogbill (pictured), senior vice president, GBCARE, Managed Care Advisor Group at Gallagher Bassett, noted that this change creates challenges for workers’ compensation systems, which must now adapt to deal with more serious cases to ensure that Injured workers receive the appropriate compensation for the care and support they need to recover.
Financial barriers to recovery
What is driving the trend toward more serious injuries? The signs point to economic strain.
“Many of the claims we are seeing are in factory-like environments, such as construction, transportation and retail,” Cogbill shared.
The Bureau of Labor Statistics reported a five-year peak in fatal injuries among construction workers in 2020, while data from UC Berkeley found that 39% of families of construction workers participate in one or more safety net programs.
These results suggest that low-income earners are disproportionately affected by workplace accidents.
Cogbill emphasized: “There is a lot of stress in society. Wealthier people are going up and people living paycheck to paycheck are going down.”
Because working multiple jobs can increase the risk of injury when accidents occur, Cogbill emphasized that financial pressures further disadvantage low-income workers. “Difficulty paying bills does not help with rehabilitation,” she added.
Access to education and healthcare
The connection between job, income and access to health care is also a crucial factor.
Low-earning workers in the gig economy, which often involve freelance or temporary work, may not have stable access to health insurance. As a result, it may be difficult for these workers to receive timely medical care and assistance in pursuing compensation claims.
“There is a significant difference between those with college degrees and those with less education, meaning this population may be less proactive about their health problems,” Cogbill noted.
While more work is needed at the federal level to improve democratic access to health care for workers, Cogbill emphasized the importance of effectively processing claims received.
“Every claim is an opportunity to make employees feel connected to their organization. It’s a very important role for us,” she said.
“Ultimately it’s about finding the care people need. What do we need to give them to make them feel better so they don’t have to see a lawyer or go somewhere else to get the advocacy they deserve?”
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2024-06-18 15:58:21
www.insurancebusinessmag.com
