Obama Administration Looking To Federalize Workers Comp?
The Obama Administration may begin Workers Comp federal program. In the past few months, I have performed a large number of phone consultations on Workers Compensation claims and premiums. One of the most common questions that I receive is what would be the largest shakeup in the Workers Compensation world in the next five years.

As the title of this post indicates, the federalization of Workers Comp – and it is in process as I write this – would make Workers Comp not look anything like it does today. If we examine what was once state administered and then converted to a federal administration, one can see great changes. Workers Comp would be no different.
From my viewpoint, if health care becomes nationalized, then it will be a very small leap to have 24 hour coverage. This is especially true if employers are tagged with administering the national health part of the plan. How many times have we seen states say that 24 hour coverage could grow from the health insurance as a modified carve out program? I have never seen the states say we can expand Workers Comp coverage to include health. Once again, nationalized health converted to 24 hour coverage would obliterate the Workers Comp infrastructures of each state. I am not intending to say this would be a positive or negative occurrence.

How well would the program run? I do not want to pick on the TSA, so I will point out the digital TV transition that was federalized. I will register no opinion. It is a great example of a federalized program.
The whole transition may not take place for 20 years. I am still trying to fathom what the system would look like overall. The main concern would be if the federal government becomes a Workers Comp insurer that could charge less than the competition for the same coverage, what would happen to the current Workers Comp carriers?
I am not making a political statement.
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