While bracing for the worst, property and casualty carriers withbig medical components in their loss costs—particularly thosecovering workers' compensation—might actually have good reason tohope for the best when the health insurance reform law, betterknown as “Obamacare,” is fully implemented.

Most of the buzz about the Patient Protection and AffordableCare Act (PPACA) has understandably revolved around its likelyimpact on the operation of health-insurance carriers. But notnearly enough attention is being paid to the law's potentialeffects on the other side of the industry.

The biggest concern for workers' comp carriers is the havoc thatmight be created in terms of getting timely access to medical careand rehabilitation services for claimants once the PPACA's mandategoes into effect next year, requiring most people to produce proofof health insurance or pay a penalty on their income tax forms.

It's Economics 101, in terms of supply and demand. With tens ofmillions who are currently uninsured expected to have coverage nextyear, there are concerns that pent-up demand for even routinemedical services could overload the healthcare system.

Any resulting delays getting in to see a doctor, taking adiagnostic test, or scheduling a physical therapy session maymerely be an inconvenience for patients injured off the job andpaying with standard health coverage.

But if such bottlenecks do materialize, they could turn out tobe a major cost-driver for time-sensitive workers' comp carriers,which place a priority on providing fast and intensified treatmentsto get people back on the job and off wage indemnity payments asquickly as possible.

However, while availability of care is a legitimate concern thatmight conceivably undermine the workers' comp system's bottom line,there is a flip side to this coin in that the mandate could end upproducing a number of positive effects as well.

For one, some of those without health insurance who get hurtaway from work have been known to falsely report that they wereinjured on the job so they can have comp insurers fully cover theirmedical expenses. Having millions more get health insurance thanksto PPACA might erase or at least ease the temptation to scam compcarriers, thereby reducing the frequency of fraudulent claims.

Meanwhile, a potential flood of newly insured patients couldaccelerate the already growing use of physician assistants, nursepractitioners and perhaps even telemedicine to cope with theoverflow. Delegating more routine care might mitigate anyanticipated rise in wait times, alleviating indemnity cost concernsfor workers' comp insurers.

In more general terms, workers' comp carriers could benefit ifthe expansion of health insurance coverage prompts more people toget regular checkups, address minor health issues before theybecome major ones, and seek treatment for chronic medicalconditions. The law further bolsters mitigation by providingincentives for employers to establish wellness programs and foremployees to participate.

Bottom line, once all the pieces of Obamacare are in placeemphasizing prevention, earlier detection, and quicker treatment ofsudden and chronic illnesses, we might eventually see a farhealthier workforce that is less likely to be injured or become illon the job, as well as recover more quickly, resulting in fewer andless severe comp claims.

Such positive outcomes may not only negate, but perhaps surpassany negative consequences from the stress that will be put on thesystem by the influx of millions of new patients underObamacare.

At least that's the optimistic view. Whenever radical change isimposed upon a huge, long-established system such as healthcare,chaos theory is the order of the day. The truth is we really haveno way of knowing how Obamacare will turn out, for insurers ortheir policyholders.

What are your thoughts, predictions, concerns, fears about howObamacare might impact the insurance markets?