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State of the States February 5, 2026

Physician_Compounding

IWP State Icons GrayBlue _National-1

 National Workers’ Compensation Research Institute (WCRI) released Recent Trends in Joint Replacement Among Workers’ Compensation Claims study, showing that joint replacement surgeries, particularly shoulder, hip, and knee procedures are becoming increasingly common in workers’ compensation cases. The report offers a consistent framework for tracking these surgeries and provides detailed insights into who receives them, where they occur, and how surgical choices influence claim costs and recovery durations.

The National Council on Compensation Insurance (NCCI) released Fast and Slow Emerging Large Claims report. The report highlights a shift in how large workers’ compensation claims develop. Fastemerging claims, those hitting $1 million in losses within about 24 months, now make up a growing share of large claims, driven largely by severe trauma injuries such as motor vehicle accidents and falls. Slowemerging claims, more commonly tied to strains and lifting injuries with prescription drugs as major cost drivers, declined significantly.

According to a Business Insurance article, a new report from the U.S. Department of Labor’s Office of Inspector General highlights persistent staffing shortages at the Occupational Safety and Health Administration (OSHA). The report underscores OSHA’s continued difficulty in maintaining adequate inspection staff, with the number of federal inspectors falling from 846 in February 2024 to 736 in June 2025, despite OSHA being responsible for overseeing nearly 8 million worksites nationwide.

The federal government was on a partial shutdown earlier this week but reopened on February 3rd, after President Trump signed a funding package that narrowly passed Congress. The measure funds most agencies through September 30, while Homeland Security is only funded through February 13, leaving immigrationrelated negotiations unresolved. Federal employees were directed to return to work, with back pay guaranteed for those furloughed.

IWP State Icons GrayBlue _Arizona

Arizona HB 2725 is a bipartisan bill introduced in the Arizona House of Representatives. The bill’s goal is to prevent contractors from substituting nonopioid prescriptions or imposing stricter requirements on them than on opioids. The bill aims to ensure that nonopioid medications used for acute or chronic pain cannot be replaced with therapeutic alternatives and cannot face tougher controls such as prior authorization or step therapy. The measure is intended to reduce barriers to safer pain management options and limit reliance on opioids. An effective date is not specified.

IWP State Icons GrayBlue _GeorgiaGeorgia HB 1071 also known as The Georgia Workplace Safety and Heat Protection Act aims to protect workers from dangerous heat exposure. HB 1071 would require most employers in Georgia to establish and maintain heat illness prevention programs that include written safety plans, access to free drinking water, shaded rest areas, and mandatory paid cooldown breaks when heat index thresholds are reached. The bill also requires regular heat risk assessments, multilingual training for employees and supervisors, and clear emergency response procedures. GA HB 1119 was introduced this week. The bill proposes amendments to Georgia’s workers’ compensation laws to regulate pharmacy care and establish pharmacy management networks for injured employees. It sets rules for prescribing, dispensing, and reimbursing medications under workers’ compensation.

IWP State Icons GrayBlue _Iowa

Iowa  Earlier this week Iowa introduced SB 3107, which targets legal reimbursement to the state from the Second Injury Fund. SB 3107, if passed, would double the amount the state can reimburse itself for legal services related to administering the workers’ compensation Second Injury Fund. Specifically, the bill would raise the cap from $450,000 to $900,000 annually.

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