Workers’ compensation provides medical care, rehabilitation, and cash benefits for workers who are injured on the job or who contract work-related illnesses. It also pays benefits to families of workers who die of work-related causes. Each state regulates its own workers’ compensation program, with no standard reporting requirements. Unlike other U.S. social insurance programs, state workers’ compensation programs are not federally financed or administered. And, unlike private pensions or employer-sponsored health benefits that receive favorable federal tax treatment, no federal laws set standards for “tax-qualified” plans or require comprehensive reporting of workers’ compensation coverage and benefits.

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