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