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PPACA:
THE END OF WORKERS’
  COMPENSATION?

                      Richard Krasner
                            HSA 6930
                       August 7, 2011
INTRODUCTION

   Triangle Shirtwaist Co. fire – March 25, 1911
       Memorial service held in NYC on
        March, 25, 2011
       Workers’ Compensation industry began as result
        of tragedy and acquittal of company owners
       PPACA signed within days of ninety-ninth
        anniversary of fire
       Attempts to merge WC into health care prior to
        PPACA
IMPACT OF PPACA ON WORKERS’ COMP
   Direct, Indirect & Speculative impacts – No
    consensus
       Direct impacts
            Revisions to the Black Lung program

            New taxes on pharmaceutical & medical devices manufacturers

            Changes in Medicare reimbursement levels would have cost

             impact on states that use Medicare for reimbursement in WC fee

             schedules
INDIRECT IMPACTS

   Black Lung program revisions

   Coordination and Subrogation of Benefits

   Expansion of Medicaid coverage, adding between 15 & 20 million

    people to Medicaid

   Expanded Medicare Part D

   Pilot Projects that involve evidence-based protocols to be used in

    WC
INDIRECT IMPACTS, CONT.
   Access to providers with more people having
    insurance
   Elimination of “donut” hole may increase prices of
    drugs
   Short supply and patient backlog of PCP in rural &
    poverty stricken areas
   Improve or damage the national economy
   Federalization of workers’ compensation
SPECULATIVE IMPACTS

 Slight reduction in claims frequency rates
  because workers will have access to health
  insurance
 More workers will be healthier because of
  greater access to care if they can reduce or
  lessen impact of obesity, smoking, depression &
  drug use
 Pilot projects to create better models for
  managing the coordination & delivery of medical
  care
 Impact on national economy
CONCLUSION

   Thomas Eaton
       “the PPACA will have little direct or immediate effect on state

        workers’ compensation systems. However, there is potential for

        considerable indirect affects, especially with regard to record

        keeping, coordination of benefits, and other details of administration.

        The actual impact…is difficult to predict. Some of the potential

        indirect effects may increase costs while others may moderate or

        even decrease costs.”
REFERENCES
   Eaton, T.A., The Impact of the Patient Protection and Affordable Care Act of 2010 On State Workers’
    Compensation Systems. Presentations and Speeches. Paper 28. Retrieved from
    http://digitalcommons.law.uga.edu/fac_presp/28

   Harrison, D.M., (2010). Health Care Reform and Workers’ Compensation, Alabama Employment Law
    Letter. Retrieved from http://www.hrhero.com/hl/articles/2010/04/22/health-care-reform-and-workers-
    compensation

   Krohm, G., (2011). What Will Federal Health Care Reform Mean For Workers’ Compensation in the
    U.S.? Retrieved from http://www.iaiabc.org/i4a/headlines/headlinedetails.cfm?id=156

   National Council on Compensation Insurance, Inc., (2010). National Health Care Law: Implications for
    Workers’ Compensation Insurance. Retrieved from
    https://www.ncci.com/documents/NationalHealthandWC.pdf

   New York State Workers’ Compensation Law, Article 2, Section 13 (d) (1).

   Wikipedia, Retrieved from http://en.wikipedia.org/wiki/Triangle_Shirtwaist_Factory_fire

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PPACA: The End Of Workers Compensation

  • 1. PPACA: THE END OF WORKERS’ COMPENSATION? Richard Krasner HSA 6930 August 7, 2011
  • 2. INTRODUCTION  Triangle Shirtwaist Co. fire – March 25, 1911  Memorial service held in NYC on March, 25, 2011  Workers’ Compensation industry began as result of tragedy and acquittal of company owners  PPACA signed within days of ninety-ninth anniversary of fire  Attempts to merge WC into health care prior to PPACA
  • 3. IMPACT OF PPACA ON WORKERS’ COMP  Direct, Indirect & Speculative impacts – No consensus  Direct impacts  Revisions to the Black Lung program  New taxes on pharmaceutical & medical devices manufacturers  Changes in Medicare reimbursement levels would have cost impact on states that use Medicare for reimbursement in WC fee schedules
  • 4. INDIRECT IMPACTS  Black Lung program revisions  Coordination and Subrogation of Benefits  Expansion of Medicaid coverage, adding between 15 & 20 million people to Medicaid  Expanded Medicare Part D  Pilot Projects that involve evidence-based protocols to be used in WC
  • 5. INDIRECT IMPACTS, CONT.  Access to providers with more people having insurance  Elimination of “donut” hole may increase prices of drugs  Short supply and patient backlog of PCP in rural & poverty stricken areas  Improve or damage the national economy  Federalization of workers’ compensation
  • 6. SPECULATIVE IMPACTS  Slight reduction in claims frequency rates because workers will have access to health insurance  More workers will be healthier because of greater access to care if they can reduce or lessen impact of obesity, smoking, depression & drug use  Pilot projects to create better models for managing the coordination & delivery of medical care  Impact on national economy
  • 7. CONCLUSION  Thomas Eaton  “the PPACA will have little direct or immediate effect on state workers’ compensation systems. However, there is potential for considerable indirect affects, especially with regard to record keeping, coordination of benefits, and other details of administration. The actual impact…is difficult to predict. Some of the potential indirect effects may increase costs while others may moderate or even decrease costs.”
  • 8. REFERENCES  Eaton, T.A., The Impact of the Patient Protection and Affordable Care Act of 2010 On State Workers’ Compensation Systems. Presentations and Speeches. Paper 28. Retrieved from http://digitalcommons.law.uga.edu/fac_presp/28  Harrison, D.M., (2010). Health Care Reform and Workers’ Compensation, Alabama Employment Law Letter. Retrieved from http://www.hrhero.com/hl/articles/2010/04/22/health-care-reform-and-workers- compensation  Krohm, G., (2011). What Will Federal Health Care Reform Mean For Workers’ Compensation in the U.S.? Retrieved from http://www.iaiabc.org/i4a/headlines/headlinedetails.cfm?id=156  National Council on Compensation Insurance, Inc., (2010). National Health Care Law: Implications for Workers’ Compensation Insurance. Retrieved from https://www.ncci.com/documents/NationalHealthandWC.pdf  New York State Workers’ Compensation Law, Article 2, Section 13 (d) (1).  Wikipedia, Retrieved from http://en.wikipedia.org/wiki/Triangle_Shirtwaist_Factory_fire