Much of the popular press has focused on the question of who will win the White House on Nov. 8, but the election could have a broader, ripple effect on workers' compensation issues.

For example, several states have initiatives on their ballots that would legalize marijuana for medical or recreational use. It's unclear what effect legalization will have on workers' compensation claims.

For now, five states have already ordered reimbursement of medical marijuana, which isn't a major cost driver — yet, says Mark Walls, vice president, communications and strategic analysis, for St. Louis-based insurer Safety National.

More significantly, the national election is likely to affect the overall direction of the U.S. Department of Labor.

Walls points to recent a report from the Labor Department, "Does the Workers' Compensation System Fulfill Its Obligations to Injured Workers?," which is critical of state workers' compensation systems, and describes the findings as "sounding an alarm" that state systems fail to provide injured workers with adequate benefits.

The report stopped short of making recommendations for immediate action, Walls says, but it does hint at the development of federal minimum standards for workers' compensation benefits and the penalties associated with them. Future policy developments in workers' comp could well depend on the next secretary of Labor.

Effect on OSHA enforcement, too

"In addition, a change in leadership in the White House and Congress could result in a shift in the overall direction of other employment laws and regulations, including (Occupational Safety and Health Administration) enforcement, which is a major component of worker's comp issues," observes Walls.

The direction and enforcement by the Labor Department of the Americans with Disabilities Act and Family and Medical Leave Act regulations, as well as other absence-based programs that also tie into workers' comp, also could shift.

"The presidential election does have an effect on workers' compensation," Walls says. "There is a ripple effect. All these things tie into together."

State elections are also important, Walls adds.

"Newly elected governors will appoint state insurance commissioners and workers' comp administrative judges," he points out, "and in some states, voters will elect new insurance commissioners directly." There are several areas affecting workers' comp in which the election will have an effect, and voters need to be aware of those issues as they cast their ballots on Nov. 8.

The effect of the election results on workers' compensation likely won't be felt immediately, but action or proposals could be seen as early as January.

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How will the elections impact the workers' comp market?

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