Workers' Comp will not be Federalized. Period.

Wednesday, April 7, 2010 | 0

By Joe Paduda
Health Strategy Associates

There are some folks in the greater 'workers comp' world who are speculating that the 'Feds' are going to take over workers' comp, or words to that effect.

This is idle speculation based on connecting unconnectable dots, reading unreadable tea leaves, seeing patterns where no patterns exist, some of it on the LinkedIn Workers Comp Forum group founded by Mark Walls (this is in no way a criticism of Mark; the Forum is an open discussion group where anyone can participate).

For the umpteenth time, there is NO interest on Capitol Hill in workers' comp. And CMS can't 'take over workers comp' without passage of a bill by Congress. As I said last summer:

<i>"We all know that comp was originally part of the Clinton reform package, known as Title Ten. What you may not know (and I didn't until Bob Laszewski told me) is exactly one person in D.C. wanted Title Ten. Bill Clinton. No one else, not Ira Magaziner or Jay Rockefeller or Hillary gave two hoots about WC, but the big dog did.

"What is also little known is that the person who deleted Title Ten was none other than Ted Kennedy. And the senator has not had a change of heart."</i>

Could this change? No.

As Sen. Ron Wyden told me several months ago, when it comes to health reform, no one wants to pick a fight with anyone they don't have to."

To those who are engaging in this idle speculation, I ask why do you think anyone in Congress has any interest at all in taking on workers' comp?

And if they did, which they don't, where exactly would this fit on the priority list? Above the education reform bill? Just below immigration reform? Senior to the budget bill, or not? More, or less, important than the nuclear non-proliferation treaty? Somewhat less significant than the Israeli West Bank settlement issue, or more? More critical than the energy bill, or no? If Congressman X has to spend time thinking about comp, or Afghanistan, or the Iraqi election, or Iran, or China's refusal to adjust its currency valuation, or bank regulation, what do you think he will do?

As to any interest at CMS in taking over workers' comp, wouldn't you think they have enough to do what with expanding Medicaid by a third, revising hospital reimbursement, drastically changing physician compensation, completely redo-ing Part D, developing and implementing over a dozen pilots and trial programs, and revamping Medicare Advantage?

Get real, people. Workers' comp is a tiny, all-but-insignificant industry that accounts for less than 2% of the total U.S. medical spend. Hell, workers' comp amounts to only 11% of the P&C industry, and no one's talking about nationalizing airplane hull insurance, or fire insurance, or general liability or auto or...

What does this mean for you?

Anyone who thinks anyone inside the Beltway spends more than two seconds a year thinking about workers comp is not thinking.

<i>Joe Paduda is principal of Health Strategy & Associates. This column was reprinted with his permission from his blog, http://www.managedcarematters.com</i>