By H. Allan Hunt
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Extra resources for Adequacy Of Earnings Replacement In Workers' Compensation Programs: A Report Of The Study Panel On Benefit Adequacy Of The Workers' Compensation Steering Committee
The relatively small number of studies, and limitations in existing data, mean that we still have an incomplete understanding of many issues regarding benefit adequacy in workers’ compensation programs. We also recognize that there are legitimate political and economic arguments that may influence an assessment regarding appropriate benefit levels, in addition to the question of benefit adequacy. For example, some argue in favor of lowering benefits below commonly understood levels of adequacy, based on assessment of the effects of workers’ compensation costs on employers’ competitive positions and resulting employment effects.
Moreover, if a worker’s claim is litigated, in most states the worker bears the cost of obtaining the recovery, which reduces his or her net benefit. Social Adequacy in Workers’ Compensation Because the goal of workers’ compensation programs is to replace lost earnings, benefits in workers’ compensation programs are not specifically designed to meet a social adequacy standard. Nevertheless, Adequacy of Earnings Replacement 35 despite the dominance of the wage replacement model, workers’ compensation programs do not completely ignore the issue of social adequacy.
Such losses, which are rarely compensated under workers’ compensation statutes, may nevertheless constitute a major change in the lifestyle or economic status of the injured worker and his or her family. Noneconomic Losses In addition to wage stream interruption and specific monetary losses, injured workers may suffer a variety of other losses resulting from occupational injuries and illnesses. These noneconomic losses are generally more subjective in nature than the economic losses discussed earlier.
Adequacy Of Earnings Replacement In Workers' Compensation Programs: A Report Of The Study Panel On Benefit Adequacy Of The Workers' Compensation Steering Committee by H. Allan Hunt