The going rate for workers’ compensation insurance in Virginia has dropped for the 6th year in a row. While this is good for business owners, these cuts come with a price for injured workers.
Workers’ compensation is insurance that pays for medical care and lost time when employees are hurt on the job. Businesses with three or more employees are required to provide this insurance for their workers.
Where Virginia ranks nationally
According to the National Academy of Social Insurance, Virginia employers have the second-lowest workers’ compensation expenses in the U.S. on average. Insurers pay out 31 cents per $100 of payroll in their claims. We are second only to Texas, at 18 cents per $100 of payroll.
By April of this year, the rate will decrease another 7.7%, as approved by the State Corporation Commission. Some areas of commerce will drop even more: Seaport and shipbuilding employers will have a decrease of 10.3%-10.4%.
Gaps in Virginia’s workers’ compensation coverage
How is the commonwealth able to obtain such low insurance rates? Their pro-business stance was created to benefit business owners and insurance companies to the detriment of injured workers. Insurance companies save money by denying Virginians coverage that workers in every other state have access to.
Case in point: Repetitive motion injuries
Virginia is the only state where workers’ compensation insurance does not cover repetitive motion injuries, such as hand and elbow numbness or trigger thumb, which is common among deli meat cutters. These injuries result from handling heavy, cold items. Many also experience the inflammation of tissues from standing on hard floors, a common plague among supermarket workers.
This coverage was not always denied. Virginia covered repetitive motion injuries from 1944 to 1985, until the Virginia Supreme Court ruled that they were not the class of occupational diseases that state law should cover. Since this coverage was revoked, legislators have tried to add coverage back into law. Thus far, their efforts have been unsuccessful.
Medical fee schedules
Virginia also implemented Medical Fee Schedules (MFS) in January of 2018, which greatly changed the landscape for workers. Medical Fee Schedules have changed the rules on how much doctors can be compensated, which has resulted in many specialists not participating in workers’ compensation cases. Specialists like neurosurgeons and psychiatrists are compensated well above the constraints implemented by MFS in workers’ compensation claims, and opt out.
When a workers’ compensation claim is initiated, employers are required to provide a list of approved doctors to the injured employee, and since MFS has been implemented, their options have been greatly reduced.
We help injured workers navigate Virginia’s pro-business stance
At Reinhardt | Harper | Davis, our attorneys are skilled in the nuances of Virginia’s workers’ compensation laws and fight for every client’s right to a healthy recovery. If you have been injured in a workplace accident, call for a free case evaluation today at 800-884-9507, or reach out to us online. We are here to help.