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WCRI research shows uptick in comp costs as workers lose Medicaid - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers WCRI research shows uptick in comp costs as workers lose Medicaid by Louise Esola Workers Comp , Workers Comp Cost Control Mar 4, 2026 BOSTON — Loss of Medicaid coverage was associated with a 2% to 3% increase in medical payments per workers compensation claim, with lower-wage and male workers and workers in construction, manufacturing and leisure most affected, according to preliminary research released Tuesday. Sebastian Negrusa, the Washington-based vice president of research for Workers Compensation Research Institute, examined new federal policy changes, including Medicaid work requirements in the Trump Administration’s 2023 budget bill, and how those changes could affect the industry. About 12% of the labor force was insured through Medicaid in 2022, Mr. Negrusa said at WCRI’s Issues & Research Conference. He highlighted the concentration among lower-wage industries, including leisure and hospitality, where about 22% of workers are Medicaid-insured. Using claims data from the period following the change, WCRI researchers also found an increase in the share of claims with prescriptions — about 3.7% — but no “measurable” change in overall claim frequency or other claim outcomes during the window analyzed. Lost-time claims showed a sharper change. One set of estimates found medical payments per lost-time claim rose an estimated 3.1% at 12 months experience overall following Medicaid disenrollments, with construction claims up 10.1% and manufacturing up 6.1%. Payments rose 4.7% for male workers, 3.5% for workers ages 25 to 55 and 3.7% for bone-fracture claims. The overall increase in lost-time claims mainly resulted from higher hospital spending. Hospital payments rose an estimated 6.7%, while nonhospital payments declined 3.3%, a shift the researchers said may indicate changes in where and how injured workers receive care after losing coverage. Mr. Negrusa said the results suggest that even “muted” percentage changes can result in significant dollar amounts when applied across the system — and could understate longer-term effects if coverage losses deepen or trigger further health system disruption. 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