There may more unintended consequences of the Affordable Care Act on employers, including staffing companies, if workers’ comp experts are to be believed. According to recent research by the Massachusetts-based Workers’ Compensation Research Institute (WCRI), the Accountable Care Organizations (ACO) created by the ACA are driving a lot of group health care cases into the workers’ comp system. As is usually the case, money is the primary incentive. Workers’ comp pays higher rates than group health, so why wouldn’t a provider want to shift non-work related injuries to workers’ comp?
WCRI studies show this is happening, especially with soft tissue injuries such as sprains. It’s also more likely to happen in states with a greater number of capitated health plans. ACOs use the capitated pay model. If ACOs gain popularity and these cost shifts continue to happen, staffing companies could see an increase in their workers’ comp rates.
Even though it will be hard to control how physicians classify injuries, staffing companies should pay close attention to their work injury reporting and claims handling, so they can rebut any doctor’s finding that says an injury is work-related when it was not. This latest development makes it all the more important to have an experienced well-staffed back office. A Professional Employer Organization (PEO) can help.
Please call us for a FREE workers’ compensation quote at 202-302-1212. Or visit us as www.StaffingCompSolutions.com.
All the best
David Schek
President-Work Comp Staffing Solutions