The rise of medical costs, ever-increasing employer responsibility and a slew of modern workforce issues have made workers’ compensation insurance a tough subject to discuss.
Work-related injury costs are changing. Yet, the actual number of injuries is decreasing. Some experts might consider workers’ compensation insurance to be in a shrinking market. However, new forecasts depict new demand.
Check out the five biggest shifts occurring in today’s workers’ compensation world. Find out where the profitable line of coverage is.
1: Bigger is Better
The emerging Clinical Mergers and Acquisitions arms race is getting faster. Now, hospitals are purchasing smaller hospitals along with their specialty medical practices. Essentially, they’re buying market shares to improve their negotiating power with their group health insurer’s community.
Health insurers are similarly following the bigger is better mantra and prioritizing negotiation. Medical benefits are taking on the same competitive roll in the workers’ compensation world. That is, they are experiencing higher costs.
In many ways, the government already offers and promotes workers’ compensation insurance. The Occupational Health and Safety Administration, for example, has impacted workers’ compensation benefits.
However, workers who are disabled and pushed from workers’ compensation to Social Security disability are pushing for more government involvement. Some lawmakers are expected to be more receptive to the discussion because Social Security has solvency concerns.
3: Identified Holes
Court cases have arisen from business insurance’s failure to offer benefits for individuals suffering from occupational diseases. These diseases are regularly barred by statutes of limitations because they take years to develop. Now, experts are working on recourses for benefits.
4: More Group Health
The employee’s health model is changing, and employers are creating group models crafted to provide quality care, consistency and longevity. Accountable Care Organizations (ACOs) are likely to enter health plans quickly after 2016. ACOs are an attractive choice for employers needing healthier workforces by extending to remote work cultures, too.
5: A Real-Time Claims Model
In 2017, we can expect to see an emerging trend based upon modern technology. Soon, injured workers will utilize smart phone service instead of phone support. Claims will be accessed via mobile apps. New technology could rewrite the way employers handle business insurance claims.
The world of workers’ compensation insurance is constantly changing, but you shouldn’t remain behind the curve. Talk to your provider today, discuss future options and take advantage of industry changes. We are proud to offer you resources and advice when buying workers’ compensation insurance.