Workers' Comp Code for Healthcare: A Guide

What are Class Codes, and why do they matter?

As a healthcare professional, you may have heard the term “class codes” while dealing with workers’ compensation insurance. These codes are four-digit numbers assigned to specific job roles, industries, and business types, making it easier for insurance companies to understand, categorize, and calculate risks.

Here’s why class codes are important in healthcare:

• Understand your business: They categorize job roles within your healthcare practice.
• Estimate risk: They assess the risk level associated with different job roles.
• Set insurance rates: They help determine how much your insurance premiums will cost.

How are Class Codes determined?

Class codes are determined and managed by the National Council on Compensation Insurance (NCCI):

Class codes are four-digit codes, which act like a label identifying different job roles in an industry to make classification and risk assessment easier. 

Class codes are typically assigned based on job descriptions, but in healthcare, the work setting matters significantly. 

For example, workers in a hospital, group home, assisted living facility, or clinic are classified based on their setting. Similarly, a nurse staffing agency’s classification depends on where its nurses are sent—whether a hospital, assisted living facility, or other location. 

Each class code is assigned a risk rate representing the likelihood of workplace injuries or illnesses. This rate is adjusted annually based on industry data to reflect any changes in injury trends, which can impact your insurance premiums.

Common Class Codes for Healthcare Employees

Let’s break down some of the most common workers' comp class codes for the healthcare industry. Each one corresponds to specific job roles and settings.

8832 – Physicians, Clerical, Dentists, Health Clinics, Urgent Care, Therapists, Psychologists

This code covers various medical offices, including dental clinics, urgent care centers, and mental health practices. Physicians, receptionists, and other administrative staff are all classified under this code. 

8833 – Hospitals: Professional Employees

This code applies to professional roles in hospitals, such as doctors, nurses, and technicians. It excludes clerical staff, who may fall under a different classification.

8831 – Veterinary

For veterinary practices, this code covers roles such as veterinarians, vet technicians, and other staff handling animals.

8824 – Retirement Living Centers, Assisted Living Facilities, Nursing Homes

This code is designated for facilities providing care to elderly residents. It includes roles that involve direct patient care, such as nurses and aides.

8826 – Retirement Living Centers, Assisted Living Facilities, Nursing Homes (Other Employees)

This code applies to non-caregiving roles within these facilities, such as housekeeping, maintenance, and kitchen staff.

8835 – Home Health Care

This code is specifically for employees providing in-home medical or personal care, including nurses, aides, and therapists.

8842 – Group Homes (All Employees & Salespersons, Drivers)

Covers employees in group home settings, including those providing care and support services to residents.

Can Clerical Workers use code 8810 in Healthcare?

In most healthcare settings, clerical workers, such as receptionists and billing staff, can use code 8810, which is designed for office-based roles with minimal risk. This is a significant benefit because it often results in lower premiums compared to the governing class code for the healthcare facility. 

However, for roles under code 8832—which includes clinics and similar facilities—even clerical staff are classified under the main governing code, along with physicians and other medical professionals. 

How do Class Codes affect Insurance Rates?

Class codes determine your workers' comp premiums. Jobs with higher risks have higher premiums to cover potential injuries.

For example, Class Code 8833, designated for hospitals, has an average workers' compensation rate of $0.89 per $100 of payroll.

In contrast, Class Code 8835—applicable to home health care—carries a higher average rate of $1.66 per $100 of payroll.

The increased rate of Class Code 8835 reflects the elevated risks associated with home health care due to factors like entering patients' homes, navigating unfamiliar environments, and potential exposure to hazardous conditions. These risks are generally higher compared to the controlled and standardized setting of a hospital (Class Code 8833).

Curious about how rates translate into costs for your healthcare business? Check out our Guide to Workers’ Comp Rates for Healthcare Providers 2025 for more details.

This might also be helpful...

Read more...

‍

Tips for Correct Classification

Using the right class codes is crucial to ensure proper coverage. Here’s how to get it right:

1. Review job duties: Match employees’ responsibilities to the correct class code.
2. Stay updated: Monitor annual changes to class codes and rates.
3. Work with your insurance agent: Collaborate closely to avoid costly mistakes or misclassifications.

Get the right coverage with accurate Class Codes

Misclassifying employees can lead to higher premiums or insufficient coverage, exposing your business to financial risks.

Still unsure about your class codes? Start an instant quote or call us at 886-338-8823 to speak with an expert. At Kickstand Insurance, we specialize in healthcare workers’ compensation and are here to help protect your business and your employees.