Which entity is typically responsible for administering workers' compensation claims?

Workers' compensation claims are primarily administered through a combination of state government and private insurers. Each state has its own workers' compensation laws that outline the framework within which claims are handled. The state government typically oversees the system to ensure compliance, set policies, and regulate the insurance program, ensuring that employees injured at work receive benefits and that employers fulfill their obligations.

Private insurance companies play a critical role as they provide the actual coverage and claims processing. Many employers obtain workers' compensation insurance from private carriers, allowing them to manage the claims directly or through the insurers' networks. In some states, employers may also have the option to self-insure, but they still must adhere to state regulatory requirements.

This dual system facilitates efficient processing of claims while maintaining oversight by the state, ensuring that workers have access to necessary medical care and compensation for lost wages due to work-related injuries or illnesses. Thus, the collaboration between state government and private insurers is essential for effectively administering the workers' compensation system.