What is a state-regulated insurance program that pays medical bills and some lost wages for employees who are injured at work?

• A. Health insurance
• B. Disability insurance
• C. Workers' compensation
• D. Social Security

Answer: (C)

Workers' compensation is a state-regulated insurance program that provides medical treatment and a portion of lost wages to employees who are injured on the job. It is funded by employers through premiums and is required by law in most places. In exchange for guaranteed benefits, workers typically give up the right to sue their employer for those injuries, which is known as the exclusive remedy. Benefits usually cover medical care, rehabilitation, and wage replacement, with specifics varying by state. This is different from health insurance, which covers medical costs in general; disability insurance, which covers non-work-related disabilities; and Social Security, a federal program not tied to a specific workplace injury.