State of the States May 09, 2025
National – Enlyte released its 2025 Drug Trends Report, Part 1: Opioids Down, Migraine Meds Up this week. The report highlights significant shifts in medication usage within workers' compensation. According to the report, opioid prescriptions have decreased, while prescriptions for migraine medications have increased.
Workers’ Compensation Research Institute (WCRI) released a study, Impact of Recreational Marijuana Laws on Workers’ Compensation Benefits. The study examines changes in workers’ compensation claim frequency and outcomes. The analysis covers 31 states, using data from workers’ compensation claims filed between October 2012 and March 2022. The study aims to answer the following questions:
- How did the adoption of RMLs affect overall workers’ compensation claim frequency?
- Were the effects different among younger workers, or those in safety-sensitive or physically demanding jobs?
- What impact did RMLs have on medical payments per claim?
- Were there changes in prescription drug use due to RMLs, including opioids?
- Did RMLs affect indemnity benefits and disability duration?
- Did the impact of RMLs on these outcomes change over time?
Arizona – Governor Katie Hobbs enacted HB 2032. As a reminder, the bill exempts noncompliant employers from being placed in the state’s assigned risk plan. Specifically, it states that employers are exempt from this plan if they knowingly fail to meet reasonable health and safety standards or fail to adhere to an audit. This is significant in Arizona, as current law requires placing employers in the assigned risk plan after two or more insurers refuse to provide workers’ compensation coverage.
Colorado – Pharmacy Benefit Manager Practices (HB 25-1094) passed both the House and the Senate and is currently awaiting further action. HB 25-1094 aims to regulate the operations of Pharmacy Benefit Managers (PBMs). According to the bill, PBMs can only earn income through a flat-dollar service fee, prohibiting income generation based on prescription drug costs, such as mark-ups. Additionally, the bill restricts PBMs from designing formularies that favor branded drugs over generics unless the branded option is cheaper.
Connecticut – HB 6844 has been tabled for the calendar year, meaning the bill is effectively dead unless it is reintroduced through subsequent legislative actions. As a reminder, HB 6844 aims to prevent cities and special districts from reducing retirees' pension benefits due to their receipt of permanent partial disability benefits under workers' compensation. If passed, this protection would begin on October 1, 2025, and would not alter any existing agreements made before that date.
Florida – With the state’s legislative session originally scheduled to end on May 2, 2025, Florida lawmakers worked hard to review proposed legislation. Although the deadline was extended to June 6, several bills were marked as indefinitely postponed and withdrawn from consideration:
- SB 366, as a reminder, would have enhanced disability benefits for firefighters, law enforcement officers, and correctional officers by establishing a presumption that certain health conditions, such as heart disease, tuberculosis, and hypertension, are incurred in the line of duty unless proven otherwise.
- HB 87, as a reminder, was designed to expand the list of cancers covered under a statutory scheme that provides benefits to firefighters as an alternative to workers’ compensation. The proposed legislation would include acute myeloid leukemia and, if enacted, would take effect on January 1.
- HB 1281, as a reminder, aimed to streamline the workers' compensation processes by revising the duties and responsibilities of the Department of Financial Services (DFS) and the Chief Financial Officer (CFO).
- HB 1069, as a reminder, would have allowed businesses to create their own programs to compensate workers for occupational injuries as an alternative to the state’s workers’ compensation system. The bill specifies that these plans must cover medical expenses for at least 156 weeks and provide indemnity benefits at a minimum of 75% of the worker’s average weekly wage.
Oklahoma – SB 391 was sent to the Governor. If passed, the bill would place the Opioid Overdose Fatality Review Board under the Office of the Attorney General and establish a database to track opioid overdose deaths.
Oregon – The Oregon Workers’ Compensation Division announced the following updates:
• Maximum Attorney Fee: The maximum attorney fee that can be awarded without extraordinary circumstances increased to $6,358 from $5,974.- Average Weekly Wage: The average weekly wage increased to $1,417.06 from $1,331.48.
- Casual Employment Threshold: The threshold used to determine whether employment is casual and whether the employer is required to carry workers' compensation will increase to $1,162.01 from $1,091.84.
- Temporary Total Disability Benefits (TTD): The new maximum TTD rate is expected to be $1,884.65.
Texas – Texas Mutual Insurance Company announced a $330 million dividend distribution to its policyholders for 2025, marking the 27th consecutive year of dividend payments, with nearly $4.8 billion distributed to Texas businesses over this period.
Florida – Extreme Temperature Worker Protection Act (S.153) was introduced this week. The bill would establish safety requirements for employers with workers exposed to extreme temperatures. Specifically, the bill would mandate written plans to manage extreme temperatures and provide safety measures, such as water, breaks, acclimation, and air-conditioning under certain conditions.
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