Overview of US Workers Compensation System James Lynch, Chief - - PowerPoint PPT Presentation

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Overview of US Workers Compensation System

James Lynch, Chief Actuary Insurance Information Institute  110 William Street  New York, NY 10038 212.346.5533  jamesl@iii.org  www.iii.org

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I.I.I. Mission Statement

Improving public understanding

• f insurance...

…what it does and how it works

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1910: Before Workers Compensation

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The Worker’s Plight

Source: Crystal Eastman, “Work Accidents and the Law.” (published 1910.)

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The Grand Bargain

1 32 43

5 10 15 20 25 30 35 40 45 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920

SOURCE: Insurance Information Institute research.

(No. of States with Workers Compensation Laws)

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The Role of the States

SOURCE: Insurance Information Institute.

States with Monopolistic WC Systems

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Benefits Varies by State

SOURCE: ProPublica.org, https://projects.propublica.org/graphics/workers-compensation-benefits-by-limb

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Does the System Work?

908,310 675,840 407,610 226,320 200,000 400,000 600,000 800,000 1,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

service-producing goods-producing

Source: U.S. Bureau of Labor Statistics, National Occupational Injuries and Illnesses Requiring Days Away from Work, 2015, Table 1, released November 10, 2016, and earlier releases.

(Number of Work-Related Injuries and Illnesses)

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Current Issues

The Opioid Epidemic

SOURCE: National Institute on Drug Abuse.

Overall Drug Abuse Deaths Opioid-Related Deaths

16,849 64,070

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6,158 20,145 1,960 15,446 730 14,427

• 5,000

10,000 15,000 20,000 25,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Opioids¹ Heroin Fentanyl²

¹Opioids less synthetic opioids ²Fentynyl and other non-methadone synthetic opioids

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Current Issues

Medical Marijuana

SOURCE: National Journal.

Congressional Cannabis Caucus

Rohrbacher (CA) Bluemenauer (OR) Young (AK) Polis (CO)

OH WV VA PA NY ME NC SC GA TN KY IN MI WI MN IL LA TX OK ID NV OR WA CA AZ NM CO WY MT ND SD IA UT FL AR MO MS AL NE KS AK MD MA RI CT DC DE NJ VT NH HI ■ Fully legal ■ Medical use legal and recreational use decriminalized ■ Medical use legal ■ Recreational use decriminalized ■ Fully illegal

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Summary

 Workers Compensation Has Worked in United States for More

Than A Century.

 Law Is Result of Grand Bargain Between Labor and

Management.

 Every State Has Its Own Workers Compensation System.  The System Evolves to Address Emerging Issues.

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Thank You! Questions?