Health Care Reform and Potential Impact on P/C Industry

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The Affordable Care Act (ACA) will take both aptitude categorical and unenthusiastic sound effects on the property/casualty insurance industry, according to a recently available paper by Travelers.

Within the paper, Travelers remarks to facilitate medicinal trends effect workers compensation, common liability, and van insurance outlay, which generate up regarding 5 percent of wellbeing concentration revenue.

Key ACA components estimated to affect the P/C industry are:

— Extended healthcare coverage – a 15 percent expansion in demand on behalf of a fixed supply of healthcare services

— Black lung presumptions – some miner (or surviving spouse) with 15 or more years of underground coal mine employment and a entirely disabling respiratory or pulmonary impairment is presumed to be disabled due to pneumoconiosis and eligible on behalf of Black Lung payback.

— Pharmacy and durable medicinal equipment (DME) taxes and assessments – the aptitude to expansion outlay 1.5 percent and 2.3 percent, in that order.

— Medical data – enhanced electronic record-keeping and sharing of data amongst providers.

Some of the aptitude categorical sound effects of the ACA on P/C insurers include increased wellness – a healthier and better conditioned population – and a decreased incentive to dossier questionable P/C claims, Travelers says.

However, on the unenthusiastic bank, the ACA can conclusion in decreased access to concentration, increasing indemnity outlay as set off access to physicians is concentrated and return to be successful is delayed, the paper remarks.

Travelers as well cautions to facilitate at hand can be increased cost shifting from Medicare to P/C payers by physicians and hospitals due to declining Medicare reimbursement tariff.

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