State Compensation Fund

Although a state entity, the State Compensation Fund (Fund) operates like, and competes with, private insurance carriers in providing workers’ compensation insurance to Arizona employers. Workers’ compensation pays lost wages and medical expenses to workers injured on the job. The Fund has a high ratio of claims expenses to its premium income, although it is taking action to improve premium pricing to better account for employer risk, and is also working to better control medical costs. The Fund should also continue to improve claims management by better aligning itself with recommended practices, improving its internal quality assurance processes, and reviewing the impact of completed organizational changes.