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State of the States May 15, 2026

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IWP State Icons GrayBlue _National-1National Travelers released its 2026 Injury Impact Report to analyze workplace injury trends and help employers improve safety and risk management. It found that although injury rates are declining, claims are becoming more complex and recovery times longer, driven by an aging workforce, higher injury rates among new employees, and persistent risks like slips, trips, and falls.

  • The U.S. Department of Labor announced an expansion of pharmacy benefit improvements under the Federal Employees’ Compensation Act, saying it will extend cost-saving measures, strengthen oversight, and improve transparency in prescription drug pricing across several federal workers’ compensation programs.
  • National Council on Compensation Insurance (NCCI) released new data which found the workers’ compensation system remains healthy. Workers’ compensation carriers reported a combined ratio of 91% in 2025, representing the 12th consecutive year of underwriting gains. Net written premium decreased by 0.2% over the year. Lost time claim frequency declined, although at a slower rate than in prior years, while medical and indemnity claim severity each increased by 4%. NCCI also estimated a redundant reserve position of approximately $14 billion across the industry.
  • Enlyte released a podcast, “What Really Drives P&C Policy Change: It’s Local,” which found that policy changes in property and casualty (P&C), including workers’ compensation, are largely driven by local political dynamics. The podcast states legislative decisions are primarily influenced at the state and district level, where constituent perspectives carry significant weight.

 IWP State Icons GrayBlue _ColoradoColorado HB 1272 is scheduled for a Senate Appropriations Agenda this week. As a reminder, HB 1272 would require the Department of Labor and Employment to collect data and develop model guidance for preventing heat-related injuries and illnesses.

  • Late last week, the Colorado Senate passed SB 184, a bill that would expand presumptive workers’ compensation coverage for firefighters. The bill broadens the categories of cancers presumed to arise from firefighting employment and extends the presumption to certain neurological conditions, including Parkinson’s disease and Parkinsonism. It would also strengthen the presumption by requiring employers to rebut claims with clear and convincing medical evidence.

IWP State Icons GrayBlue _HawaiiHawaii HB 1514, a bill clarifying processes related to vocational rehabilitation services, will be sent to the governor this week. As a reminder, the bill would require injured workers who elect to enroll in a vocational rehabilitation program to select a provider within 30 days.

IWP State Icons GrayBlue _LouisianaLouisiana SB 408 passed the Senate and will now be sent to the House. As a reminder, SB 408, if passed, 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.

  • The Senate unanimously passed HB 537, which would eliminate the Workers’ Compensation Advisory Council. Specifically, the bill would repeal the 17-member advisory council created in 2011.

IWP State Icons GrayBlue _RhodeIslandRhode Island The Rhode Island Department of Business Regulation’s Insurance Division approved an overall 2.5% decrease in workers’ compensation advisory loss costs, effective August 1, 2026. The approved filing also includes a 12.9% decrease for “F” classes and no change for USL&HW classes, following a review of NCCI’s proposed rates and supporting actuarial analysis.

 IWP State Icons GrayBlue _SouthCarolinaSouth Carolina Lawmakers sent H 3163 to the Governor, a bill that would expand workers’ compensation presumptions for firefighters by adding coverage for strokes. The bill would also broaden the circumstances under which heart, respiratory, and stroke conditions are presumed compensable to include incidents arising during firefighting, technical rescues, or strenuous training exercises, while clarifying that the presumption does not apply to clerical or sedentary duties. 

IWP State Icons GrayBlue _ViriginaVirginia S173 passed the House and Senate late last week and will now be sent to the Governor. As a reminder, S173 would allow injured workers to request vocational rehabilitation services if their employers do not provide them within 90 days of the worker being out of work. The bill takes effect on July 1, 2026.

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