How Can Repealing Obamacare Affect Workers’ Compensation Premiums?

The future of Obamacare has been in question for quite a while. Americans are unsure of the direction it will go since it has become clear that the plan may be repealed or modified. The political wrangling has caused many to fear the ramifications of any changes that may take place. Obamacare has its share of flaws, but for many who could not afford health insurance, it was a tremendous help. With Obamacare, a large sector of the public received good medical care. Prior to its being enacted they had to go without medical care. They simply had no alternative.

There are many rumors that Obamacare might be repealed despite its many benefits. The biggest fear is that there might be no alternative healthcare plan implemented in place of this affordable healthcare solution.

Large businesses with 50 or more employees are still compelled to provide healthcare insurance to employees. If the Affordable Care Act is no longer an option the result can be a much higher insurance costs for businesses, individuals and families. Without decent health care coverage many employees may file workers’ compensation claims to avoid the high cost of healthcare. This will undoubtedly impact the cost of workers’ compensation insurance for many businesses. Employees will do whatever they can to take care of their medical needs. It can be very difficult to distinguish injuries from 2 separate accidents. And it is very difficult to distinguish accidents on the job as opposed to off the job.

Many with pre-existing conditions, which may no longer be covered, may move over to the workers’ compensation system to help treat their injuries and health conditions. If an employee injures an arm and doesn’t fully recover, then reinjures that same arm while at work, they will receive workers’ compensation benefits. Without affordable medical coverage many workers’ with pre-existing conditions may be forced into the workers’ compensation system. Insurance companies will most likely fight these cases, however the burden of proof falls on the employer and their insurance company to prove the injury and/or condition isn’t work related. This can only bog down the system and add significant costs for employers. For example: an employee gets into an argument at work and then collapses from a heart attack. Who’s to say the heart attack wasn’t from stress rather than a pre-existing heart condition? So, a door is opened to administration and legal costs, lost wages and lost work productivity. And the whole system suffers. All the shouting about “repeal and replace” has yet to offer specifics that would put the average American at peace with the subject of healthcare costs.

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *