Jul
23
2022

COVID-19 LED TO 20% INCREASE IN TX WORK COMP CLAIMS

The number of workers’ compensation claims reported to the Texas Department of Insurance, Division of Workers’ Compensation (DWC) increased 20% during the first 27 months of the COVID-19 pandemic (January 2020 through March 31, 2022) compared to the prior 27 months. As of May 1, 2022, insurance carriers reported more than 83,000 COVID-19 claims and 448 fatalities to DWC, with slightly more than half of these claims (51%) and the fatalities (55%) involving first responders and correctional officers. The factsheet, “COVID-19 in the Texas Workers’ Compensation System, shows that 66% of all claims between January 2020 through March 31, 2022, involved injured employees who tested positive or were diagnosed with COVID-19. Insurance carriers accepted 58% of COVID-19 positive test claims. 41% of COVID-19 positive test claims were denied by carriers. Of the 21,000 denials of COVID-19 claims with positive tests or diagnoses, there were only 184 disputes filed with DWC as of May 1, 2022. “The increase in COVID-19 occupational disease claims reported during the pandemic has temporarily interrupted a 20-year trend in Texas of fewer workers’ compensation claims reported each year,” the report said. The greatest number of COVID-19 claims were reported in January 2022 (12,305), followed by July 2020 (8,922), December 2020 (5,984), and August 2021 (5,336). 51% of COVID-19 claims were in the public administration sector, which includes first responders and correctional officers/prison workers. Health care and social assistance accounted for 18% of claims. Among fatal claims, 80% involved men and 67% involved workers who were 50 years or older. For claims reported to insurance carriers as of March 31, 2022, carriers paid a total of $40.6 million in medical costs on COVID-19 claims. 76% of costs have been paid by political subdivisions, followed by commercial insurance carriers (20%), and the State of Texas (4%). “These costs are likely to increase over time as claims mature,” the report said.

Header Photo by Fusion Medical Animation on Unsplash

Business Solutions

Personal Solutions

Connect With Us

Sign up for regular email with information that can help you better insure your business and family.

Call Today
800-399-6059