June/July 2025   Volume 23, Number 3        
 

Reducing Opioid Dependence in Workers’ Compensation: Lessons from California and Beyond

The opioid crisis has posed significant challenges in workers’ compensation cases, where injured workers often receive opioid prescriptions for pain management. Over the past decade, states have increasingly focused on reducing opioid dependence, implementing innovative policies and expanding alternative treatments.

California, in particular, has led the way with robust reforms, but similar efforts across the country highlight a broader shift toward safer pain management practices.

California’s Leadership in Opioid Reform

California has made significant strides in curbing opioid use among injured workers through legislative action and changes to its workers’ compensation system. In 2018, the state implemented a drug formulary that provides clear guidelines for opioid prescriptions in workers’ compensation cases. This formulary encourages doctors to explore non-opioid options first, limiting initial opioid prescriptions to short-term use while requiring further justification for long-term opioid therapy.

Additionally, California has expanded access to alternative pain management options, such as physical therapy, chiropractic care, and acupuncture. The Division of Workers’ Compensation has worked to improve education among healthcare providers, urging them to adopt evidence-based treatments for pain relief. These efforts have led to a steady decline in opioid prescriptions, contributing to improved recovery outcomes for injured workers.

Similar Progress Across Other States

While California is at the forefront, other states have taken similar steps to reduce opioid reliance in workers’ compensation cases:

  • Intervening in the worker’s lawsuit – The employer or insurer joins the worker’s lawsuit against the third party to protect their financial interests.
  • Filing a direct lawsuit – If the worker does not sue the third party, the employer or insurer can file a lawsuit independently.
  • Negotiating reimbursement – The employer or insurer may negotiate a settlement with the worker or third party to recover costs.
  • Examples of Third-Party Claims in Workers’ Compensation Cases

    Third-party claims arise when an employee is injured due to the negligence of someone other than their employer. Here are some common scenarios:

    • Ohio: The state’s Bureau of Workers’ Compensation has aggressively tackled opioid overuse through prescription monitoring programs and proactive physician outreach. Since implementing reforms, Ohio has reported a significant reduction in opioid prescriptions within its workers’ compensation system.
    • New York: New York has placed a strong emphasis on alternative treatments, promoting access to physical therapy and behavioral health support for injured workers. The state’s workers’ compensation board has issued stricter guidelines on opioid use, leading to fewer long-term prescriptions and improved pain management strategies.
    • Massachusetts: Massachusetts has adopted opioid prescribing limits and encourages non-opioid pain management methods. The state also integrates addiction recovery services into its workers’ compensation system, helping individuals with opioid dependence transition to safer treatment alternatives.
    • Florida: Florida has implemented drug formularies similar to California’s, ensuring that opioids are prescribed only when absolutely necessary. The state emphasizes early intervention programs that connect injured workers with non-opioid treatments before opioid dependence becomes a risk.

    The Ongoing Shift Toward Safer Pain Management

    With states continuing to adopt stricter opioid regulations and encourage alternative pain management strategies, the landscape of workers’ compensation is transforming. Employers, insurers, and healthcare providers are increasingly prioritizing comprehensive care approaches that improve recovery while minimizing the risks associated with opioid dependency.

    California’s successes, coupled with similar reforms in other states, offer a promising outlook for reducing opioid reliance in workers’ compensation cases nationwide. As momentum builds, stakeholders must remain committed to further refining policies, expanding access to alternative treatments, and ensuring injured workers receive the safest and most effective care possible.

    [return to top]

 

 

 

 

In this issue:

This Just In ... Workers Comp Executive Sees Reserve Redundancy “Masking” Results

The Trump Administration’s Shift Away from Disparate Impact: Meritocracy vs. Proportionality

Understanding Subrogation Rights in California Workers’ Compensation

Reducing Opioid Dependence in Workers’ Compensation: Lessons from California and Beyond

First-Year Workers’ Compensation Injuries

 

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2025 Smarts Publishing. Tel. 877-762-7877. https://smartspublishing.com