How Are Workers’ Compensation Claims Paid?

If you have not received your full workers’ compensation benefits, consult with a Kansas City workers’ compensation attorney for help.

Employers pay for their employees’ workers’ compensation benefits through workers’ compensation insurance premiums. The system used for workers’ compensation is determined by each state. However, three methods of payment are available for employers when it comes to workers’ compensation: state insurance program premiums, private insurance company premiums, or self-insured direct payments to employees.

How Workers’ Compensation Benefits are Paid

Workers’ compensation benefits are paid directly by the employer, an insurance company, the state authorities, or an employer-hired third-party administrator responsible for managing workers’ compensation claims for the employer. Employees claiming workers’ compensation will receive the same benefits no matter how the payment is made by the employer to the employee. It is necessary to become familiar with the way workers’ compensation claims are managed by the groups involved.

Workers’ Compensation Programs Implemented By the State

A number of employers may opt to provide workers’ compensation insurance using an insurance fund or program implemented by the state. These programs are normally managed by the department of commerce, labor, or industrial relations of the state. State-run programs are normally selected by small employers or employers belonging to businesses with limited work-related hazards that result in injuries.

The state department tasked in managing the program will take charge of paying for the workers’ compensation benefits if the employer selects insurance programs run by the state. The state department functions as an insurance company in this situation. The premiums are paid by the employers and the insurance company will evaluate the benefits to be paid whenever a claim is made. The insurance company will also provide the necessary payment to the injured employee. The workers’ compensation benefits will be given directly to the injured employee.

Private Workers’ Compensation Insurance Companies

Employers are also given permission by a number of states to select private insurance companies to handle the workers’ compensation benefits. A good number of employers in these states opt to provide workers’ compensation benefits offered by these private insurance companies. Employees will receive the workers’ compensation benefits from the workers’ compensation insurance company.

When a Company is Self-Insured

In a number of states, it will be necessary for employers who opt to be self-insured to prove they have a suitable amount of assets to handle all claims for workers’ compensation benefits. These self-insured companies are required by a number of states to allow significant state supervision to ensure they are following the appropriate procedures. It also ensures the employees will receive the complete workers’ compensation benefits they are entitled to receive.

Employees of self-insured companies are advised to hire a Kansas City Missouri workers’ compensation lawyer if they think they have not received their full workers’ compensation benefits. Call The Law Office of James M. Hoffmann at (816) 399-3706 for a free consultation.

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