March 3, 1999 Workers' compensation insurer can't be sued while deciding claim, court says WASHINGTON--State workers' compensation system insurers cannot be sued while they decide whether the treatment is reasonable and neccessary, the Supreme Court ruled Wednesday. The court held that both public and private insurers can withhold payment while deciding. The court added that private companies that serve as compensation insurers cannot be sued because they did not act in the role of the state. Only government action, not private citizens acts, can violates someone's constitutional rights. The justices reversed a lower court decision in a Pennsylvania case that let a group of injured workers sue insurers for withholding their benefits pending a review of their treatment.