Study Finds Low Benefit levels In Arizona WC
NU Online News Service, Oct. 5, 4:22 p.m. EDT?Arizona's workers' compensation system offers a number of notable, positive features such as a lifetime access to benefits, according to a new study, but it also pointed out that the system has one of the lowest benefit levels in the country.[@@]
The Workers Compensation Research Institute, a public-policy research firm based in Cambridge, Mass., said Arizona's workers' comp system offers a lifetime entitlement to medical and indemnity benefits?payments to replace lost wages?as well as an active role of the state agency in educating and assisting system's participants and reducing litigation.
The study noted that the Arizona system placed no time limits on reopening a claim?and settlement agreements didn't close out liability for future indemnity or medical benefits. This lifetime entitlement to benefits, the study said, helps provide a safety net for workers.
However, the Institute also noted that injured workers in Arizona were subject to some of the lowest weekly benefit levels in the country.
According to the study, the highest weekly amount for temporary total disability benefit of $374.01?representing some 57 percent of the state's average weekly wage?was second lowest in the country as of last year. In contrast, in 22 other states, the maximum weekly amount for temporary total disability benefit is 100 percent of their statewide average weekly wage.
The study also found that in 45 percent of the cases last year, the injured worker's average monthly wage exceeded the $2,400 monthly maximum amount for computation purposes. This meant that workers earning at least $28,000 a year received the maximum monthly benefit. The report observed that while the low maximum monthly temporary total disability benefit created economic hardship for some, it also created a powerful motivator to return to work for higher wage earners.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.