June 23, 2025
In the past few years, new challenges have hit the world of workers’ compensation. From mental health claims to rising costs, we’re bringing our insight and empathy to help our partners adapt to these to new complexities. Here are five trends we’ve noticed in the world of workers’ comp, and five ways we’re responding.
The cost of mental health claims
Despite accounting for only about 2% of total claims, mental health claims are having an increasing impact — especially since the pandemic. Overall, mental health claims cost 3.5 times more and last 3.5 times as long as other types of workers’ comp claims. Our goal is reducing time, cost and providing the best care possible.
We’ve found that engaging with a behavioral health specialist within 90 days can reduce the time off work by up to 70%. With PSYPACT allowing psychologists to practice across state lines and new telehealth tools expanding access for everyone, injured workers are getting the support they need when they need it. And our behavioral health specialists also focus on understanding and treating employees at all stages, from clinical counseling to day-to-day coaching.
Getting ahead of cumulative stress
With mental health coming more into the spotlight, addressing cumulative stress claims is becoming a central issue. Laws and coverage vary from state to state, with some states like California and New York broadening their definition of acceptable mental mental health claims (claims without a physical injury). One in three workers saying they’re stressed sometimes or often in their jobs, so it’s important to get in front of the issues.
Our approach is to be as proactive as possible. Our examiners are deeply familiar with the state-to-state differences in coverage and definitions to ensure employees get fast access — since denying mental health claims only increases stress. We also take advantage of AI tools to scan medical records and find possible triggers to flag stressors sooner, because quicker action means better outcomes.
The risks and needs of an aging workforce
As older workers stay on the job longer, they’re filing more and more claims. Whether they’re working longer or re-entering the workforce, workers aged 60 and up account for the largest increase in claim volume, with longer recovery times and higher medical costs. Plus, with older individuals, we often must adapt our care to consider some comorbidities and a higher level of needed care.
How are we handling adapting to an aging workforce? Tailored care plans, age-aware providers and proactive case management ensure supported recoveries. Beyond the initial treatments, we’re considering additional needs like home health, medical equipment and ancillary care services post-discharge.
Inflation, tariffs and stress on our medical system
It’s no mystery that the economic situation is volatile at the moment — and that’s hitting the medical system. With global factors like tariffs, inflation and supply chain disruptions causing prices to rise, we’re keeping an eye on everything from supplies to pharmaceuticals to equipment to prepare our clients and employees for the impact.
As it stands, we and our partners are already evaluating pricing controls and preparing for potential shortages. We might not know what the exact impacts will be, but we’re ready and resilient.
Enhanced care with AI tools
One of the more powerful allies we have to adapt to these challenges is our AI tools and unmatched perspective. By reading unstructured data, flagging high-risk claims, identifying needs for behavioral health support and guide examiners toward faster interventions and better outcomes, AI is helping us stay ahead of these new challenges.
Vooruitblik
Workers’ compensation is more complex than helping an employee recover from a physical injury. Understanding the connections between the rise of healthcare claims, our aging workforce and increased stresses on the medical system is the key to adapting and thriving. With our insights and powerful tech tools, we’re leading the charge into the future.
