There are some benefits of the reform, while others might increase workers’ compensation medical expenses. A few of the direct consequences of the reform on workers’ compensation are:

• A significant amount of previously uninsured workers now have coverage. This would ideally mean that insured health workers file fewer claims – a positive factor. However, a recent RAND Corp study revealed that employer behavior is more significant than whether they’re covered when filing a compensation claim.

• This could mean that when an injured worker filed a health claim, an already supportive employer may not see any difference or may increase claims with the reform.

• In contrast, a long-term effect is that the increase in insured individuals means increased preventive care and a healthier workforce. It also means that there will be an eventual decrease in the number of workers’ compensation claims with healthy workers recovering and returning to work quicker.

• Additionally, workers will have fewer opportunities to attribute health issues to occupational disease. Instead, they will receive treatment for conditions like diabetes that might worsen if left untreated and require surgeries or other expensive therapies.

• With an increase in insured individuals, there will be an increase in demand for physicians. The proportion of doctors and individuals, especially in some rural regions, can delay initial treatments and processing workers’ compensation-related claims. Having reduced staff at regulation agencies as a result of budget cuts could worsen this.

• There will no longer be an exclusion for pre-existing conditions in group health. There will now be less incentive for employees to claim that long-standing conditions as job-related. But there will be a need for an increased job and workplace accommodations with new safety training programs for new issues that might arise.

• There has been a readjustment in Medicare reimbursement levels. Despite taking up only a tiny portion of the hospital’s revenue, it has high-profit margins. Therefore, Medicare might reduce hospital reimbursements. In this scenario, hospitals and specialists will have to look for alternate revenue sources and might target workers’ compensation. It also might amplify the issue in areas affected by state cuts in Medicare reimbursements.

• Companies will face a 2.3% excise tax on medical devices and supplies. Employers will likely see little difference in their bottom lines due to this tax. These costs are already generally addressed via fee schedules, or they are so inflated that the 2.3% is unlikely to be reflected in the final price.

• With a larger percentage of the population covered by health insurance, providers will face less charity care delivery. For this reason, they may be less likely to transfer the costs of providing services to uninsured individuals onto workers’ compensation.

• Electronic medical records will be introduced. Physicians will be able to diagnose and treat workers’ compensation claims more efficiently and accurately, and pharmacy benefit managers will easily spot drug interactions. In the long term, a model of care emphasizing the holistic treatment of chronic care could help patients return to and maintain full functionality. Adopting a model that stresses patient education and coordination of care could decrease medical errors and increase the quality and efficiency of care. 
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