Home Health Care Workers’ Comp Class Codes: A Guide
Workers' compensation insurance protects home health care owners from potential lawsuits and provides financial assistance to their employees in case they get injured or sick at work. Knowing the different home health care workers’ comp class codes ensures that your business is covered adequately and avoids any surprises with insurance costs.
In this guide, we’ll explain the importance of home health care class codes and list the main class codes that agency owners need to be aware of.
Understanding Class Codes and their Impact on Insurance
What are Class Codes and how are they determined?
Insurance class codes are 4 digit numbers that act like barcodes to give information about specific job roles. These codes are assigned and maintained by the National Council on Compensation Insurance (NCCI).
The NCCI checks how often workers in each industry get injured and then transforms that into a risk rate for each class code. Class codes help insurance companies assess your business’ risk and set insurance rates.
How do Class Codes affect Insurance Rates?
Class codes indicate how risky a specific job is. Insurance companies use these rates to calculate the cost for each workers' compensation policy. Jobs with higher risks will have more expensive policies to cover potential injuries.
For example, the national average rate for workers’ compensation for a home health aide is $1.77 per $100 of payroll, according to one leading partner carrier, while the rate for a bookkeeper or clerical employee is only $0.11 per $100 of payroll.
Curious about how these rates translate into costs for your agency? Check out this Guide to Home Health Care Workers’ Comp Rates for more details.
Common Class Code for Home Health Care Workers
Class Code 8835
Most states use Code 8835 for home health care employees. This code covers a wide range of services, including home, public, and traveling health care, companion care, home health aides, and personal care providers.
It encompasses both skilled home health workers, such as nurses, therapists, and social workers, and non-skilled workers such as aides, housewives, and companions.
Kickstand Tip: Class Code 8835 vs. Code 8832
Class code 8832 is used for therapists who work in an office like a clinic or a Dr.'s office rather than in homes. If you operate a physical therapy clinic or center where people come for treatment, Code 8832 would apply, and the rate is generally lower than 8835.
Even if at some point you start sending therapists to client's homes, the clinic's classification may still apply. Talk to a licensed insurance agent for more details.
Get more Kickstand tips to manage your home health care workers’ comp.
State-Specific Home Health Care Class Codes
Some states use different class codes than the industry class codes recommended by the NCCI.
Here are a few examples:
Class Code 8827 - California
In California, home health care agencies use class code 8827, which applies to all types of agencies.
Class Code 9051 - New York
In New York, class code 9051 is used for all home health care agencies.
Class Code 8828 - Texas
In Texas, all home health care agencies fall under class code 8828.
Class Code 0942 - Pennsylvania and Delaware
Pennsylvania and Delaware split home health care agencies into skilled and non-skilled workers. Agencies that hire skilled workers like nurses and therapists fall under class code 0942.
Class Code 0943 - Pennsylvania and Delaware
Non-skilled workers like companions and aides fall under class code 0943.
Non-Industry Class Codes
Home health care agencies can use different codes for employees that are not aides or nurses to save on workers’ comp costs. For example, you can use code 8810 for a finance/bookkeeper role. This will save you money because this code typically has lower rates than home health care industry codes.
For more information on reducing your home health care workers' comp costs, check out our guide.
Get the right Coverage with accurate Class Codes
If you still have questions about which class code your business belongs to, don't hesitate to reach out to an agent or call us at 886-338-8823. We specialize in providing workers’ compensation to home health care aides and agencies and can help you get the coverage you need to protect your business and employees.
With the right coverage and accurate class codes, you can confidently ensure the well-being of your team and the success of your business.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
Legally, workers’ comp is not needed for 1099 employees. However, if the employee lacks coverage, you may be held liable in case of injury. Also, if a state or federal authority determines your 1099 workers are not in fact independent contractors, they must be reclassified as employees. That also means you’re required to provide them with workers’ compensation insurance.
