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