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State of the States June 12, 2026

 

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IWP State Icons GrayBlue _National-1National The National Council on Compensation Insurance (NCCI) released its June 2026 Labor Market Insights report, providing a monthly overview of key labor market trends and their potential impact on workers’ compensation. The report shows continued labor market strength, with 172,000 jobs added in May and employment growth nearing prepandemic levels. It also highlights broad sector gains, steady wage growth, and a surge in job openings, signaling sustained labor demand.

WorkCompCentral will host a webinar on Tuesday, June 23rd from 1:00–3:00 PM EST titled “Medicare Changes Impacting Workers’ Compensation: Regulatory Updates, MSP Compliance, and Claims Implications.” The session will be led by Rafael Gonzalez, Esq., and John V. Cattie, Jr., who will provide practical, real-world guidance on navigating evolving Medicare Secondary Payer (MSP) requirements and avoiding costly compliance issues. Both speakers are nationally recognized leaders in MSP compliance and Medicare set-aside (MSA) strategy, bringing decades of experience in law, insurance, and settlement administration. Registration is required.

 

IWP State Icons GrayBlue _ArizonaArizona – The Industrial Commission of Arizona announced that the state’s 2027 maximum average monthly wage will increase by 3.3%. The maximum will rise from $6,131 in 2026 to $6,333.32 for injuries occurring during the calendar year 2027.

After several false starts in Arizona’s fiscal year 2027 budget process, momentum is building and there is a strong possibility the Legislature will move the budget forward this week. Finalizing a budget agreement would unlock a backlog of bills that have been stalled in both chambers for the past month. The Senate has scheduled floor sessions from Tuesday through Friday, signaling readiness for action. If the budget advances on this timeline, lawmakers are expected to quickly move a large volume of pending legislation before adjourning for the year shortly thereafter. While there are currently no workers’ compensation provisions included in the budget itself, amendments are often introduced late in the process, and we will continue to closely monitor any developments in that area.

IWP State Icons GrayBlue _Louisiana

Louisiana – SB 408 was enacted this week. As a reminder, the bill would establish a statewide workers’ compensation medical claims database and revise the method for calculating provider reimbursements. The measure would require Louisiana Works to create and maintain an “All Workers’ Compensation Medical Claims Database” that includes medical and pharmacy claims submitted by all payors in the state. According to the bill, the database would be used to track reimbursement patterns, utilization, outcomes, and identify potential fraud or system inefficiencies. 

IWP State Icons GrayBlue _Pennsylvania

Pennsylvania SB 1215 made it out of committee this week. As a reminder, SB 1215 would update reimbursement rules for topical medications under Pennsylvania’s Workers’ Compensation Act. If passed, the bill would set new payment limits for compound drugs, capping reimbursement at $400 per 30day supply plus a $20 compounding fee and prohibits reimbursement for compounds that duplicate commercially available products.

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