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Apr
6

Health reform impact on work comp – another opinion

I’ve commented at length on the impact of health reform on workers comp, and will dive deeper into this topic in the coming months. There are several others who also are looking into reform, and their different opinions are well worth considering.
Greg Krohm, Executive Director has posted his views on the topic recently; as the head of the association of workers comp regulators, Greg has a unique perspective enhanced by deep knowledge of the intricacies of work comp regulation and operation in every jurisdiction.
Greg makes several interesting points:
– pharma costs may continue to rise due to increased demand for drugs
– the increased demand for physician services, particularly in rural areas, may lead to extended delays in getting initial treatment, especially in states with low fee schedules and high administrative loads. This is a trenchant observation, and one I’m going to have to think about as it relates to provider networks.
– with lower state budgets due to the significant expansion of Medicaid leading to possible continued reductions in staff at regulatory agencies, disputes will take longer to settle, rulings longer to be handed down, and clarifications on rules and laws delayed.
Greg’s observations are well worth considering.
What does this mean for you?
The impact of reform will play out over several years; knowing what may come will help you recognize the early signs and prepare for change.


One thought on “Health reform impact on work comp – another opinion”

  1. Regarding today’s blog, I recall a presentation at the NCCI Annual
    Issues Symposium last year that touched on the Canadian work comp and
    healthcare system. If I recall correctly, the competing (personal vs.
    work-related) demand on physician services is partly addressed by
    allowing higher compensation to physicians for treating work comp cases.
    This also recognizes the need for priority treatment as part of the
    return-to-work process.
    Although I have been familiar with some of your work through the Work
    Comp Insider, I only recently signed up for your blog. I appreciate your
    insight and willingness to bring in other points of view. Keep up the
    good work!

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Joe Paduda is the principal of Health Strategy Associates

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