The Impact of Health Care Reform on Workers Compensation

Although occupational medicine was not a direct target of federal health care reform and is therefore left to the states, the passage of federal reform will certainly have a variety of consequences, both explicit and subtle, on workers' compensation insurance over the next several years. While experts can only speculate whether these changes will ultimately be positive or negative regarding workers' compensation for employers, there are several reasonable arguments that suggest a bit of both.
Obligatory insurance could mean that chronic diseases will be better controlled, decreasing the severity of work-related claims. Further, employees with insurance generally file fewer workers' compensation claims, possibly implying that the reform will also decrease the total number of claims.
On the other hand, the increased volume of employees requiring treatment could lead to decreased availability of care, delays in workers' compensation-related treatments and less willingness by providers to participate in occupational medical networks.

Other provisions of health care reform could affect workers' compensation. The sizeable adjustments in Medicare reimbursement levels may pressure providers to shift costs – possibly signifying higher costs per claim as the changes begin to take their toll. The absence of the pre-existing care exclusion means less incentive for employees to claim that certain conditions are work-related, but greater demand on employers for workplace and job accommodations, a source of new exposures.Whatever the ultimate impact of the reform, each employer will need to stay alert and work with an insurance professional to capture advantages and navigate legislation.■