Workers’ compensation benefit programs vary from state to state; however, most employers pay for benefits in one of three ways. These programs can pay out benefits to injured individuals through state-run insurance programs, payments to an insurance company or directly to workers. Philadelphia workers’ compensation law firm Mednick, Mezyk & Kredo felt it helpful to provide information on these three programs to understand where your benefits may be coming from.
State-Run Insurance Program
State-run workers’ compensation benefits are often run by the state’s department of labor, commerce, or industrial relations. Employers who opt for state-run insurance programs are often smaller employers or have very few workplace injuries. Payments from state-run insurance programs come from employers’ payments into a state fund that operates much like a state insurance fund. When you receive ongoing benefits, they come from a pool of resources that are collected through premiums from employers across Pennsylvania.
Private insurance companies insure many companies throughout the state and work on a premium basis. While not every state allows private insurance companies to insure for workers’ compensation benefits, if your employer has a workers’ compensation insurance policy through an insurance company, benefits are paid out via the insurance company.
Often for companies that are large enough with assets to cover anticipated injuries. Self-insured companies often must adhere to state oversight to ensure proper protocol and procedures are in place to limit workplace injuries. In the event that you work for a company who has opted to self-insure, chances are that they use a third-party administrator to make benefit payments. The third-part administrator processes paperwork and manages the claim. The employer pays out the benefits to the administrator and the administrator sends the funds to the injured employee.
When injured on the job, it’s important to seek out the advice of an attorney as soon as possible. Your first consultation is always free and can help you determine what your next steps should be. Contact the experienced Philadelphia workers’ compensation attorneys at Mednick, Mezyk & Kredo for a free consultation: 888-807-WORK (9675).