The agency estimated that it will spend $215 million, more than four times what it announced last week, to expand this benefit and others to assist policyholders and their employees in overcoming challenges posed by COVID-19. Public health officials require infected people to quarantine themselves, meaning many will lose out on income from work.
"We are doing everything we can to provide our customers and injured workers with the support they need to make it through the COVID-19 crisis," said State Fund Chief Executive Officer Vern Steiner. "We have worked hard to be in a position where we can help, and we're proud to stand with the essential workers who are risking their lives every day to hold our communities together."
State Fund officials said the agency provides workers' compensation insurance to one in every 10 California businesses.
Agency leaders had said last week that they had set aside $25 million to cover workers income losses and medical costs but noted that the board of directors would monitor the demand and make adjustments as needed. To get the benefits, workers must provide a confirmed positive test for COVID-19 for the period of time between when Gov. Gavin Newsom issued his March 4 stay-at-home order and before that order is lifted.
State Fund officials said that, with the added benefits, the agency will pay out a total of $115 million to assist essential workers. In addition to covering medical costs, agency officials stated in a news release, they will also extend temporary disability benefits to any covered essential worker who must self-quarantine. The medical and income assistance will not affect how policyholders' premiums are derived, State Fund leaders said.
The agency's board also made other expansive moves, doubling the size of a fund that employers can draw on to buy equipment or make renovations to improve workplace safety in light of the challenges to contain the spread of COVID-19. The fund is now set at $50 million
"In the four days since the fund was announced, State Fund has received over 700 applications for COVID-19 workplace safety support funds," leaders said in a news release issued Monday. "The first several payments, all at the maximum $10,000 reimbursement, were sent to qualified applicants today."
Researchers say that COVID-19 is primarily spread when people cough, sneeze or talk and release pathogen-laden droplets into their hands, onto other people or onto surfaces.
Caused by the new coronavirus, the respiratory illness has killed more than 40,000 Americans and has seriously sickened so many people that hospitals in New York, Washington, Michigan and other states have been overwhelmed. County and state public health officials around the nation have issued stay-home orders to slow the spread of the virus in an attempt to ensure that all U.S. citizens have access to the highest level of care they need.
On Monday, Steiner also announced that State Fund would be creating a third fund called the Returning California to Work COVID-19 Safety Protocol Fund. Seeded with $50 million, it will help businesses that were not deemed essential by Newsom's executive order to defray the cost of measures taken to protect their workers from getting COVID-19. Grants will pay out $10,000 or two times the policyholder's premium, whichever is less.
Workers should check with their business owner or their employer's HR department to determine if their business gets its workers' compensation insurance through State Fund.