National: WorkCompWire released an article titled The Future of Workers’ Compensation Insurance in the United States: A 10-Year Outlook. The piece highlights how demographic shifts, technology adoption, and emerging risks will reshape the industry by 2035. Key trends include the retirement of nearly half the current workforce, increased use of AI and automation for claims and fraud detection, and growing attention to mental health, climate-related hazards, and gig worker coverage gaps. Insurers are urged to preserve institutional knowledge, scale digital tools responsibly, and innovate to meet evolving workforce needs.
The Workers’ Compensation Research Institute (WCRI) will host a 30-minute webinar presenting findings from its latest study, Psychosocial Factors and Functional Outcomes Following Physical Therapy on January 15th at 2pm ET. The session will examine how psychosocial “yellow flags” like fear avoidance and poor coping skills affect recovery outcomes for injured workers undergoing physical therapy. Registration is free for WCRI members, legislators, and press; non-members can attend for $50.
The IRS raised the standard mileage reimbursement rate to 72.5 cents per mile, increasing the amount employers in certain states must pay injured workers for travel to medical appointments. Workers’ compensation agencies in Alabama, California, Minnesota, South Carolina, and Tennessee announced the 2.5-cent increase for trips occurring on or after January 1.
The National Safety Council (NSC), in partnership with the NCCCO Foundation, launched a free Organizational Safety Gap Analysis Tool aimed at reducing workplace fatalities and serious incidents. This interactive tool aims to help employers evaluate seven key areas, such as leadership, hazard identification, worker engagement, and continuous improvement, to identify safety system weaknesses before incidents occur.
Kentucky: HB 26, introduced this week, seeks to expand workers’ compensation coverage to include psychological injuries for first responders and certain frontline personnel. The bill would create a presumption for occupational diseases such as PTSD and other mental health conditions, even without a physical injury, when the trauma results from extraordinary work-related events.
New Jersey: On December 22, 2025, A 4838 passed the Assembly with a vote of 67-6-1. As a reminder, A 4838 mandates prescription drug coverage for serious mental illnesses, eliminating prior authorization and utilization management requirements, including step therapy protocols. This legislation aims to improve access to medications for individuals diagnosed with conditions such as schizophrenia, bipolar disorder, major depressive disorders, and post-traumatic stress disorder. The bill is currently awaiting further action in the legislative process.
Texas: The Texas Division of Workers’ Compensation (DWC) is seeking public comments on its proposed Medical Quality Review Audit Plan for 2026. This plan will establish the agency’s audit priorities for the year and is expected to focus on either the medical necessity and appropriateness of prescribing topical analgesics or the compliance of utilization review agent peer review reports with the Disability Guidelines’ accepted standards of care and proper reviewer selection. Audit topics will be chosen based on stakeholder feedback, and the Division may conduct both audits if resources permit. Comments and suggestions on the proposed plan can be submitted by email to QME@tdi.texas.gov no later than January 16 at 5:00 p.m.
Virginia: Late last week, HB 130 was introduced in the Virginia House of Representatives. This bill would broaden the workers’ compensation presumption for certain cancers to include sheriffs and deputies and expand benefits to firefighters and other public safety employees. Specifically, HB 130 recognizes the increased risk of cancers such as lung cancer, bladder cancer, and other related conditions due to occupational exposure.
Washington: State Representatives Dan Bronoske (D) and Tarra Simmons (D) introduced HB 2243 at the beginning of 2026. This bill aims to broaden the definition of “attending provider” within the workers’ compensation system to include physical and occupational therapists. By doing so, the legislation seeks to enhance the accessibility of care for injured workers, allowing these therapists to play a more integral role in the treatment process.
Stay connected to all relevant information in workers' compensation and pharmacy by subscribing to our weekly newsletter. For the previous wrap-up, please click here.