There are some folks in the greater ‘workers comp’ world who are speculating that the ‘Feds’ are going to take over workers comp, or words to that effect.
This is idle speculation based on connecting unconnectable dots, reading unreadable tea leaves, seeing patterns where no patterns exist, some of it on the LinkedIn Workers Comp Forum group founded by Mark Walls (this is in no way a criticism of Mark; the Forum is an open discussion group where anyone can participate).
For the umpteenth time, there is NO interest on Capitol Hill in workers comp. And CMS can’t ‘take over workers comp’ without passage of a bill by Congress As I said last summer:
“we all know that comp was originally part of the Clinton reform package, known as Title Ten. What you may not know (and I didn’t until Bob Laszewski told me) is exactly one (1) person in DC wanted Title Ten. Bill Clinton. No one else, not Ira Magaziner or Jay Rockefeller or Hillary gave two hoots about WC, but the big dog did.
What is also little known is that the person who deleted Title Ten was none other than Ted Kennedy. And the Senator has not had a change of heart.
Could this change? No.
As Sen. Ron Wyden told me several months ago, when it comes to health reform, no one wants to pick a fight with anyone they don’t have to.”
To those who are engaging in this idle speculation, I ask why do you think anyone in Congress has any interest at all in taking on workers comp?
And if they did, which they don’t, where exactly would this fit on the priority list? Above the education reform bill? Just below immigration reform? Senior to the budget bill, or not? more, or less, important than the nuclear non-proliferation treaty? somewhat less significant than the Israeli West Bank settlement issue, or more? more critical than the energy bill, or no? If Congressman X has to spend time thinking about comp, or Afghanistan, or the Iraqi election, or Iran, or China’s refusal to adjust its currency valuation, or bank regulation, what do you think he will do?
As to any interest at CMS in taking over WC, wouldn’t you think they have enough to do what with expanding Medicaid by a third, revising hospital reimbursement, drastically changing physician compensation, completely redo-ing Part D, developing and implementing over a dozen pilots and trial programs, and revamping Medicare Advantage?
Get real, people. Workers comp is a tiny, all-but-insignificant industry that accounts for less than two percent of total US medical spend. Hell, workers comp amounts to only 11% of the P&C industry, and no one’s talking about nationalizing airplane hull insurance, or fire insurance, or GL or auto or…
What does this mean for you?
Anyone who thinks anyone inside the Beltway spends more than two seconds a year thinking about workers comp is not thinking.
To join Mark’s Forum, click here.
Mar
26
Joe:
Hasn’t Congress been looking at creating a “federal charter” for insurance companies, which would, in fact, federalize insurance and, by default, federalize workers’ compensation? As I understand the proposals that have been floating around it would be a voluntary choice of charter by insurance companies. One big regulator to deal with instead of 50 smaller ones. Some might view that as a “foot in the door” but it likely would look more like the banking industry where institutions who stay within state lines can choose a state charter while multi-state banks are regulated federally.
Brian – thanks for the comment.
Yes, some Congresspeople have been talking about this for at least five years, but nothing has come of it to date. In my albeit limited experience in the lobbying world, elected officials occasionally ‘champion’ ideas and programs to placate their constituents, knowing full well that the likelihood of the idea or program getting any attention is remote at best.
That is my impression of the federal charter. That said, the drive for increased regulation may result in more interest in at least some sort of minimum standards, but advocates may find themselves taking on state regulators, the NAIC, and other stakeholders.
Paduda
Take a look at (google) Joe Baca’s H.R. 635 and also mmsea. These things do not hapen overnight but in increments. There is no takeover per se in one swoop but the Feds are making huge inroads into insurance areas formerly left to the states as shown by the health care bill.