The report, "The Impact of U.S. Health Care Reform on Workers' Compensation and Other Casualty Lines," noted that the reforms are not specifically directed at the workers' compensation system and that some provisions are not applicable to workers' compensation.
But, the report added, the legislation "may have an indirect effect on workers' compensation medical costs and on the cost structures underlying the medical portion of tort liability settlements and judgments."
The reforms aimed at bending the health care cost curve downward could have both positive and negative effects on workers' compensation, according to the report. These reforms include initiatives such as a mandate that insurers spend either 80 percent (small group market) or 85 percent (large group market) of premiums on medical services, a heavy focus on wellness programs, and measures to encourage quality care through payment models and financial incentives.
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