Today, Claims Journal posted an article about the potential effects of ACA on Auto and Work Comp rates.

Quoting the article:

Though parts of the Affordable Care Act have been in place since 2010, key reforms began on January 1, 2014. According to industry experts, the ACA won’t affect the medical bill payment process; however, insurers will likely see an increase in the cost of medical care for auto accident patients, more subrogation liens from health insurers and the potential for delayed treatment in workers’ compensation claims.

And, continuing onward:

The Travelers white paper also noted some possible positive effects of the ACA on the P&C industry could include:

• Increased wellness.

• Decreased incentive to file questionable P&C claims.

• Increased fraud detection supported by government funding.

• Fewer emergency room visits.

• A decreased need to over-treat.

In addition, the Conn.-based insurer’s white paper noted some potential negative consequences of the ACA on the P&C industry:

• Decreased access to care, increasing indemnity costs as immediate access to physicians is reduced and return to work is delayed.

• Increased cost shifting from Medicare to P&C payers by physicians and hospitals

due to declining Medicare reimbursement rates.

•Increased pharmacy and DME medical costs due to new taxes and fees passed on to

consumers.

• Decreased network discounts due to increased bargaining power of physicians/hospitals and less need to drive volume, increasing medical costs.