While it’s not a done deal, the passage of health reform legislation is all but inevitable. When President Obama signs the bill on Tuesday, the American health care system will begin a change more drastic and comprehensive than anything we’ve seen in decades.
Not all of this will be for the better, and when those unintended consequences begin to be felt there will be plenty of recriminations. I’ll give my take on what those might be later.
For now, here’s the quick summary of how reform will likely impact work comp.
1. Less need for hospitals to cost shift to work comp to make up for revenues lost due to treating the uninsured. Sure, Medicaid reimbursemt is lousy and Medicare not much better but something’s a lot better than nothing.
2. Possibly more cost shifting from other providers to work comp to make up for big cuts in Medicare reimbursement. More to come on this late this summer when Congress takes on the SGR debate.
3. Possibly higher claims frequency, although this is based on assumptions and interpretations. The data indicate those workers with health insurance are more likely to file comp claims than those without, but that appears to be a statistical relationship and not neccesarily a causal one. More explanation on the way.
4. For the big managed care companies, a much stronger and tighter focus on managing group health, Medicaid and Medicare will mean less interest in, and resources dedicated to comp. Make no mistake, this is an event for which the big and small health plans are woefully unprepared. If they are to survive they must adapt immediately.
All we have time for today; these big events really should wait till I’m back from holiday.
Mar
22
Do you think that the immediate application of the taxes on Drugs and Medical Supplies/Devices, will impact WC costs? Do you forsee an expansion of the MSA reporting requiremetns to Medicaid? How will the self-insurers handle their WC lob once the major HC reforms impact their group side?
Do you expect the 10% increase in primary care Medicare reimbursement rates to flow through to Comp in those states with Comp rates pegged to Medicare?
Well the health care bill passed, not sure what to make of it as I am not really sure what is in it. I think health care needs reform just not sure this is what will do it. Thanks for the article in your blog, hope to make it back here again.