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Workers Comp Insurance Could Work On Federal Exchanges


Workers Comp Insurance on Federal Exchanges – A Future Possibility?

Would Workers Comp Insurance work on Federal exchanges?   Workers Compensation has followed health insurance with an approximately 10-year lag.

Picture Of Pointing At Digital Workers Comp Insurance Text

Obamacomp was a term first coined on this blog a few years ago.  One has to wonder how much of a stretch it would be to also include WC in the federal insurance exchanges once they are properly established this and next year. Could we be discussing Obamacomp right alongside Obamacare in the near future?

The Federalization of Workers Comp has already begun with the CMS approving the settlement of claims that reach certain thresholds.  The Federal Insurance Office (FIO) has already started analyzing the Workers Comp markets.

One twist on this would be to have only the medical portion of the claims to be included in some type of medical treatment insurance exchange with the indemnity portion of the claim left to the states to handle.  After all, there are already interstate Experience Mod ratings. There are endless variations and possibilities once the state or federal exchanges are working properly.

Federal Workers Comp Insurance headquarters
Wikimedia Commons – Tony Webster

Would this cause the death of Workers Comp as we know it?  That is not a likely possibility, however, it could be one of the factors that would cause a very large change in the way that WC is underwritten and handled today.

The House of Representatives has been pushing for a federal insurance license procedure for a few years.  The procedure that the House is now considering also includes adjusters and risk managers in its language.  Could an agent cherry-pick certain states that were more profitable by having a federal license?

There are so many questions without a good answer yet.   Considering the likelihood that changes are coming to most insurance systems is one way to prepare along with being flexible.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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