Understanding the Different Types of Compensation Benefits

Manage HR Magazine | Thursday, August 08, 2024

Workers' compensation insurers and employers are permitted to offer managed care benefits in many states. Employers may have to choose such a plan if their state requires insurers to offer it. Various managed care laws exist. The following features are included in most plans:

Fremont, CA: Employers affected by their workers' compensation policies have the right to receive benefits as stipulated by state law. Most states offer four primary categories of benefits: medical coverage, disability coverage, rehabilitation assistance, and death benefits. While the types of benefits available to injured workers across the nation are generally uniform, the specific amounts and methods of delivery for these benefits can differ significantly.

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Death

Death benefits are paid to the spouse, minor children, and other dependents of an employee who dies after a work-related injury. Costs associated with funerals and burials may also be covered. The state may pay this for a set number of years, up to a certain amount.

Disability

The purpose of disability benefits is to replace a portion of the wages lost due to a work-related injury. There are four types of disability:

● Temporary disability: Injuries to the worker result in complete disability and the worker is unable to work for a short period of time.

● Temporary disability: A short-term injury only partially disables the worker. An employee may break their arm while on the job and work part-time while it heals.

● Permanent injury: A permanent injury has been sustained by the worker. The worker can't earn income from performing the same type of work as before.

● Permanent partial: A permanent injury, such as hearing loss, prevents the worker from earning the same amount of income as before.

Managed Care

Workers' compensation insurers and employers are permitted to offer managed care benefits in many states. Employers may have to choose such a plan if their state requires insurers to offer it. Various managed care laws exist. The following features are included in most plans:

● Health care provider network: A set of doctors and other health care providers who provide low-cost medical services through a contract with an insurer or employer. Providers are (or should be) skilled in occupational medicine. Network providers are required by some states to treat injured workers.

● Management of utilization: The process of selecting, planning, and delivering appropriate medical care that is cost-effective and necessary. Certain medical procedures may require pre-approval by providers.

● Pharmacy benefits manager: A person in charge of managing prescription drug plans for the purpose of controlling costs. PBMs negotiate discounts, contract with pharmacies, and pay prescription drug claims.

● Medical care management: Managing treatment to ensure an injured worker can return to work as soon as possible.

Medical coverage

Workers' compensation covers medical expenses for most injured employees. The coverage covers the cost of treating workers who are ill or injured at work. Fees charged for doctor appointments, hospitalization, nursing care, medications, medical diagnostic tests, physical therapy, and durable healthcare equipment (such as crutches and wheelchairs) fall under this category.

There are no dollar limits, deductibles, or copays in most medical insurance policies. Until the worker is able to recover from the injury, benefits are provided. There may be restrictions on certain types of treatments under state law. A physical therapist or chiropractor may be allowed a maximum of 24 visits per year according to law. A state's laws may also specify if alternative therapies, like biofeedback or massage therapy, are covered. In some states, a treatment may not be permitted in others.

 

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