WCRI Research Links Medicaid Loss to Rising Workers' Comp Costs

The Workers Compensation Research Institute found that medical payments for lost-time claims increased after Medicaid disenrollments in 2023 and 2024 across 31 states. The research, which cited Congressional Budget Office estimates, suggests that projected federal spending reductions could leave roughly 11 million people without Medicaid coverage by 2034. The institute found that average medical payments increased 3.1% at 12 months, with increases reaching 10.1% in construction and 6.1% in manufacturing.

The findings confirm industry concerns that costs are shifting from health coverage to workers' compensation. This trend is driven by the potential for workers without health insurance to utilize workers' compensation for medical care, which could increase claims costs for insurers.