Enacted Legislation on Mental Health in Workers’ Compensation 2022

An emphasis on improving the mental health of Americans is gaining traction on both sides of the aisle. While private, public, and non-profit stakeholders have taken several steps to prioritize mental health needs, there remains a staggering crisis throughout the U.S. The most recent estimates show that approximately a quarter of American adults take prescription pills for their mental health needs compared to just 15.8 percent in 2019, according to the Center for Disease Control (CDC), exposing the pandemic's toll on everyday Americans. 

Mental health while on an overall decline among Americans, some states are doing better than others amid unprecedented times. Rankings from Mental Health America (MHA) overall show that Northeast and Upper Midwest areas see the lowest prevalence of mental illness. Whereas areas of the Pacific Northwest, the South, and sections of the Plains states experience the highest. Vermont is touted as the best state for one's mental health compared to Nevada, which came in last. 

For the workplace, ensuring employees mental stability can be a significant challenge. A 2021 report from Qualtrics in association with Harvard Business Review revealed that 76 percent of workers expressed at least one symptom of a mental health condition in the past year. This change is a 27 percent increase when compared to a 59 percent figure in the 2019 findings. Although mental health’s impact is primarily personal, there are other unintended consequences to inaction on the matter. Globally, ill mental health is approximated to result in 16 trillion in lost output and productivity by 2030. However, a nationwide study shows that investing in mental health resources for employees has its worthwhile benefits. One Work, a global coalition of businesses including Pepsi Co and Bank of America, said in its 2019 findings that for every dollar invested in mental care, there is an estimated $4 increase in productivity. 

The thick of the pandemic may have passed, but not without its lingering effects. In response to mitigating the mental health crisis, some state legislatures have taken action to meet the needs of working Americans. In 2022, states such as Colorado, Florida, New Hampshire, and Maine enacted legislation to help combat mental illness in their workforce.

The Colorado state legislature passed HB22-1354 in June of this year. Through this legislation, state officials hoped to clarify existing statutes and provide injured workers increased privacy when it came to their mental health conditions. Specifically, bill language prohibits the disclosure of mental health records to any person not deemed "reasonably necessary for the medical evaluation, adjustment or adjudication of claims involving psychological or psychiatric issues." This language ensures that injured workers' mental health records are released only to parties reasonably involved in their claim. HB22-1354 also requires that mental injury records be kept separate from the employer's personnel files. 

Under previous Florida law, first responders were required to file notices within 90 days of the qualifying event or manifestation of a mental disorder. HB689 altered the current statutes, so first responders will now have 90 days after being diagnosed with PTSD to file a notice of claim with their employer. Any claim not filed within 52 weeks of the PTSD diagnosis would be barred. By adjusting the conditions of application eligibility to 90 days after being diagnosed rather than from the event date of which the disorder occurred, this modification allows numerous first responders to qualify and access benefits essential for their mental health. HB689 became effective on July 1st. The legislation's passage comes at a crucial time when it is estimated that first responders are 5x more likely than the general population to suffer from mental injuries.

Although not expanding workers' compensation coverage, the state of New Hampshire did enact legislation mandating mental health training as a preventive measure. SB357 also continues the Commission for Post-Traumatic Stress Disorder in First Responders. The Commission's recommendations are used frequently to update state agency guidelines and make legislative recommendations where seen fit. Bill provisions require law enforcement officers, dispatchers, fire, and emergency workers to undergo yearly training on mental health issues to better ensure first responders know who to call and where to access resources if experiencing PTSD. This legislation will become effective on September 6th. 

Maine Legislative leaders passed LD1879 earlier this year to tackle PTSD within the first responder community. In 2017 Maine passed a rebuttable presumption for first responders who have PTSD. Included in this original bill was an expiration date set for October of 2022. LD1879 extends this legislation past 2025. The extension also provides reporting requirements for claims research purposes. 

While the pandemic may have exacerbated the mental health crisis, issues persisted long before. As Covid discussions continue to decline in legislative circles, mental illness legislation is likely to factor into 2023 statehouse priorities across the country. Going forward, legislators and state agencies will likely need to collaborate with non-profit and private businesses to find innovative ways to improve the mental health condition of the country.