Which of the following is true about workers' compensation?

Which of the following is true about workers' compensation?

• A. It is funded entirely by federal government.
• B. It provides only health care, not wage replacement.
• C. It is regulated by state statutes and can be administered by private insurers or self-insured employers.
• D. It does not require any pre-approval for reimbursement in any state.

Answer: (C)

Workers’ compensation is a state-regulated system designed to provide both medical care and wage replacement for work-related injuries or illnesses. It isn’t funded by the federal government; states set the rules and financing, and employers typically pay through premiums or self-insure. Coverage can be provided by private insurers or directly by the employer who self-insures. Pre-approval requirements for treatments or reimbursements vary by state, so there isn’t a universal rule that applies everywhere. This combination—state statutes plus administration by private insurers or self-insured employers—is what makes that statement true.

Workers’ compensation is a state-regulated system designed to provide both medical care and wage replacement for work-related injuries or illnesses. It isn’t funded by the federal government; states set the rules and financing, and employers typically pay through premiums or self-insure. Coverage can be provided by private insurers or directly by the employer who self-insures. Pre-approval requirements for treatments or reimbursements vary by state, so there isn’t a universal rule that applies everywhere. This combination—state statutes plus administration by private insurers or self-insured employers—is what makes that statement true.