State of the States October 31, 2025

National – Spooky Government Shutdown Update 👻: The federal government remains in a state of eerie silence, now on its 31st day of shutdown.  

The National Council on Occupational Safety and Health raised alarms over the ongoing federal government shutdown, stating it is putting workers at risk nationwide. Since the shutdown began on October 1, key safety agencies, including OSHA and MSHA, are operating at reduced capacity. The Council emphasized that even before the shutdown, these agencies were already strained due to understaffing and underfunding, and the current situation further jeopardizes workplace safety. 

The Senior Care Pharmacy Coalition (SCPC) released a new report analyzing the economic impact of Medicare Part D’s negotiated drug prices on long-term care (LTC) pharmacies. The report reveals that the addition of 2027 Maximum Fair Prices (MFPs) will worsen financial pressures on LTC pharmacies, potentially reducing operating margins by 35% and leading to losses of up to $32 per prescription.  

A new report from the National Council on Compensation Insurance (NCCI) reveals that remote-friendly jobs are linked to lower workers’ compensation claim rates. By analyzing data from 2019 to 2022, NCCI found a 40% drop in claims among “special classes” within the combined office sector. The findings suggest that the rise in remote work may be contributing to safer working conditions across certain job categories. 

Enlyte announced a free webinar on November 4 at 12 pm EST exploring current pharmacy trends in workers’ compensation. The session will highlight declining opioid use and costs, while noting rising expenses in areas like retail/mail-order medications, migraine treatments, and physician-dispensed topicals. The webinar will also cover strategies to manage pharmacy programs and provide insights into both in-network and out-of-network trends. Registration can be found here.  

Arizona – Volunteer fire departments across Southern Arizona are facing unexpected and dramatic increases in insurance premiums, with some seeing spikes of over 300%. Fire chiefs say the increases are due to reclassifications and risk assessments that don’t reflect their actual operations. The hikes are largely attributed to a 2017 Arizona law that expanded the list of cancers presumed compensable for firefighters, and a policy that assumes volunteers earn salaries equivalent to full-time firefighters for indemnity calculations. Some departments, like Mescal-J6, tried to mitigate costs by reclassifying volunteers as part-time staff. 

Illinois – HB 4177 introduced this week by State Representative Martha Deuter (D), proposes amendments to the Workers’ Compensation Act. If enacted, the bill would increase burial expense benefits under workers’ compensation by 25%, raising the amount from $8,000 to $10,000. These benefits would be payable by employers to the widow, widower, other dependents, next of kin, or individuals incurring burial costs for a deceased employee.

New Jersey – The New Jersey Compensation Rating and Inspection Bureau (NJCRIB) submitted a 4.3% decrease in workers’ compensation premiums and rate levels, effective January 1, 2026, for new and renewal policies. If approved, this would mark the tenth consecutive year without a rate increase. 

Nevada – SB 376 went into effect on October 1, 2025. As a reminder, SB 376 allows firefighters, arson investigators, and police officers more options when choosing a provider for heart and lung claims. Due to this change, the Nevada Department of Business and Industry Division of Industrial Relations Workers’ Compensation Section released a FAQ regarding the new changes. 

Nevada – State Senator Scott Hutchinson (R) introduced SB 1053, which would amend the Workers’ Compensation Act to explicitly extend coverage to volunteer firefighters and paramedics injured during organized fundraising activities. The bill clarifies that individuals participating in such events are to be included in the definition of “employee” for the purposes of workers’ compensation. This change ensures that volunteers injured while supporting their departments through fundraising are eligible for benefits just as they would be during emergency response duties. 

Workers’ Compensation Research Institute (WCRI) released the CompScope™ Medical Benchmarks for Pennsylvania, 2025 Edition. The report states that medical payments per workers’ compensation claim in Pennsylvania rose 14% in 2023, reversing a multi-year trend of declining costs. This increase is largely attributed to larger annual updates to the state’s medical fee schedule, which is tied to the statewide average weekly wage (SAWW). The study compares Pennsylvania’s medical payment metrics with those of 17 other states and analyzes trends from 2018 to 2023, using data from non-COVID-19 claims through March 2024. 

Articles of Interest

Families like mine depend on their local pharmacy for medicine — and for survival 

STAT 10 (October 27) - Pharmacy closures are a public health emergency in slow motion. As Walgreens plans to shutter 1,200 stores by 2027 and Rite Aid reels from bankruptcy, rural communities face a growing crisis: pharmacy deserts. Click here to read Guadalupe Hayes-Mota's story, highlighting how closures threaten access to essential medications, especially for vulnerable populations. 

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