National – The Workers' Compensation Research Institute (WCRI) released two studies this week:
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- Post-Inflation Trends in Medical Payments Through 2025 - The report examines how the inflation surge from 2021 to 2023 impacted medical payments within workers’ compensation systems across the U.S. According to the report, while general healthcare prices rose about 3% annually, workers’ comp payments varied significantly by state.
- Patterns and Trends of High-Cost Claims Involving Rotator Cuff Disorders – This study explores the relationship between condition-specific factors and the likelihood of a workers’ compensation claim becoming high cost. It analyzes approximately 50,000 rotator cuff disorder claims drawn from a broader dataset of over 930,000 lost-time claims across 32 states, involving injuries that occurred between October 2015 and March 2019.
The National Council on Compensation Insurance (NCCI) published its Q2 2025 Quarterly Economics Briefing. The report highlights growing economic uncertainty and its potential implications for the workers’ compensation system. As new tariffs raise concerns about rising medical costs, the report suggests that claim expenses may increase in the coming months. Additionally, shifting fiscal policies and global trade tensions may disrupt labor markets, potentially affect premium levels and claim frequency. While these risks are notable, current data does not yet indicate a significant downturn in economic conditions.
Delaware – Governor Matt Meyer signed SB 145, which enables direct deposit for workers' compensation benefit payments and increases funding for workplace safety inspections. Specifically, the bill allows insurers and self-insured employers to pay disability benefits electronically with the injured worker’s consent.
Missouri – SB 90 died late last week. As a reminder, SB 90 aimed to modify provisions related to alternative therapies and treatments, including the use of psilocybin. Specifically, the bill aimed to establish a legal framework for the therapeutic use of psilocybin and encourages research into its effectiveness. Psilocybin, a naturally occurring psychedelic compound found in “magic mushrooms,” has recently gained attention for its potential therapeutic benefits, particularly in treating conditions such as depression, anxiety, PTSD, and substance use disorders.
Texas – The Texas Division of Workers’ Compensation (DWC) held its quarterly stakeholder meeting on Tuesday, July 9, 2025. The agenda included a review of workers’ comp legislation from the recent session, updates on telemedicine, audit plans, medical fee dispute resolution, healthcare cost and usage reports, compliance investigations, and plans for videoconference hearings.
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