Magnifying Glass
Back to Archives

Predictions for Workers' Comp in 2020

02 Jan, 2020 WorkersCompensation.com

                               

Well, proving once again that I can’t/won’t learn from past mistakes, here are five of my predictions for 2020. 

 1.  The work comp insurance market will stay soft.


As in mushy, pillowy, baby rabbit fur soft.

Multiple factors make a strong argument for a continued soft market. (that’s a market where prices decline and it’s very easy to get insurance)

First, insurance rates and prices continue to drop in pretty much every state. Second, outside of California self-insureds I haven’t seen any significant uptick in – or even leveling off of – claim frequency.
Third, see prediction #2.

2.  Work comp medical trend will remain flat.


Trend has been flat for several years now; as a result, medical severity (that’s a financial term, not a clinical one) remains well under control as well.
 
 
3. Facility costs will gain a lot more attention.


This is the biggest cost problem payers are facing; hospitals and health systems have figured out work comp payers are a very soft target, and are hoovering dollars out of payers’ pockets.
We’ll see more payers take specific actions to address facility costs; payment integrity will gain significant traction among payers and service providers. (PI firm Equian is an HSA consulting client)
 
4.  Consolidation in the work comp services industry will continue, with more of the big players merging/acquiring each other.
A few years ago there were ten or a dozen PBMs, now there are 4 with any measurable share. Paradigm and Genex have consolidated the case management sector. There are now a handful of bill review application vendors; that could decrease if Conduent’s Stratacare/ware goes up for sale early in 2020. Same thing has happened in the TPA space driven primarily by Sedgwick.
The consolidation has been both horizontal, that is across different sectors (e.g. Paradigm buying CM and network companies) and vertical (TPAs buying other TPAs); as there are fewer assets for sale
Sure there is a proliferation of start-ups and smaller players but it is going to take a while for these to break thru and gain major share in one of the verticals.
 
5.  OneCall will be sold. 

And possibly broken up by the buyer. After KKR and GSO’s takeover of the near-bankrupt company two months ago, not much has been heard from Jacksonville HQ.  After the balance sheet clean-up and Polaris review are completed, expect the new owners to put it up for sale. KKR and GSO will turn a handsome and quick profit, prior debtholders won’t have to write off their entire portfolio.
No word on whether employees will get something back as well; that would require action by the current owners as “old” stock is essentially worthless.Next time – the next five.

By Joe Paduda

Courtesy of Managed Care Matters

 

    • Read Also

    Study Suggests Digital Tools Improve Pain Related Disability In Total Knee Replacement Patients

    Sarasota, FL (WorkersCompensation.com) – With an increase in life expectancy, as well a surge in the age of workers over the age of 65, the numbers of patients with Osteoarthritis (OA) is rising as well.  […]
    How Wearable Tech and Virtual Care are Transforming Claims, from Engagement to Outcomes 

    Sarasota, FL (WorkersCompensation.com) — Last week’s National Workers’ Compensation and Disability Conference in Las Vegas set the stage for an impactful dialogue about the transformational potential of wearable technology and virtual care in the workers’ […]
    What Do You Think: Was Firing Nurse who Lost Fight with Door WC Retaliation? 

    Belleville, NJ (Workerscompensation.com). An employer’s action during the period after which an employee reports an injury and the date she is fired can go a long way to either showing retaliation or negating it.   A […]

    About The Author

    • WorkersCompensation.com

    More by This Author

    ReEmployAbility Announces Free Webinar: ‘Overcoming Jurisdictional Return-to-Work Challenges’

    ReEmployAbility, Inc.Contact: Rebecca Dearth(813) 261-3117 | news@reemployability.com Brandon, FL (May 10, 2023)- ReEmployAbility CEO and Founder Debra Livingston will be hosting a second free, live Work Comp Central webinar in their continued series to educate […]
    NCCI Annual Golf Event Tees Up $25,000 for Kids’ Chance of America

    (Orlando, FL–May 10, 2023)—The National Council on Compensation Insurance (NCCI) has given $25,000 to Kids’ Chance of America, supporting college scholarships for the children of injured workers. NCCI made the donation in conjunction with its Annual […]
    What Makes a CMS Appeal Successful?

    In response to a Medicare conditional payment demand, payers can access a five-level appeals process, including a hearing before a Centers for Medicaid and Medicaid Services (CMS) administrative law judge (ALJ). Most conditional payment demand […]

    Read More

    Study Suggests Digital Tools Improve Pain Related Disability In Total Knee Replacement Patients

    Sarasota, FL (WorkersCompensation.com) – With an increase in life expectancy, as well a surge in the age of workers over the age of 65, the numbers of patients with Osteoarthritis (OA) is rising as well.  […]
    How Wearable Tech and Virtual Care are Transforming Claims, from Engagement to Outcomes 

    Sarasota, FL (WorkersCompensation.com) — Last week’s National Workers’ Compensation and Disability Conference in Las Vegas set the stage for an impactful dialogue about the transformational potential of wearable technology and virtual care in the workers’ […]
    What Do You Think: Was Firing Nurse who Lost Fight with Door WC Retaliation? 

    Belleville, NJ (Workerscompensation.com). An employer’s action during the period after which an employee reports an injury and the date she is fired can go a long way to either showing retaliation or negating it.   A […]
    How the Court Ruled

    If you chose B, you sided with the court in Herron v. New York City Transit, No. 22-989-cv (2d Cir. 06/30/23), which held that the worker failed to show that the Authority’s explanation for firing him […]
    How the Court Ruled

    If you chose A, you sided with the court in Arizmendi v. Rich Products Corp., No. C.D. 2022 (Pa. Comm’w Ct. 12/07/22), which held that the worker did not have a serious health condition. The court […]
    How the Court Ruled

    If you chose B, you sided with the court in Nickey v. Saint Rose Dominican Hosp., No. 84688-COA (Nev. Ct. App. 06/28/23), which held that the nurse’s injury arose out of personal, not work-related circumstances.  The […]

    Request a Demo

    To request a free demo of one of our products, please fill in this form. Our sales team will get back to you shortly.