Photo by BLOOMBERG A sign marks the entrance to the headquarters of the Social Security Administration located on Security Boulevard in Baltimore, Maryland.

The Social Security Administration’s proposal that workers compensation benefits be reported annually to the agency would increase insurers’ and employers’ paperwork and costs.

“There is a potential here of an extra burden … and potentially extra costs for employers and carriers around the country,” said Rafael Gonzalez, Tampa, Florida-based vice president of strategic solutions at Helios Settlement Solutions, a unit of pharmacy benefit manager Helios.

The requirement likely would be similar to reporting rules implemented by the Centers for Medicare and Medicaid Services in 2009, said Brad Peterson, a shareholder at law firm Heyl, Royster, Voelker & Allen P.C. in Urbana, Illinois.

“It would require insurers or others covered under this proposed rule to determine the Social Security status of a particular workers compensation claimant. So it would certainly add a burden in that regard,” Mr. Peterson said.

The mandate is a single paragraph in the Social Security Administration’s proposed fiscal 2016 budget published in February. The administration says it would require “states, local governments and private insurers that administer” workers comp and public disability benefits to report data on those benefits to the administration.

The proposal also would “provide for the…