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Friday, April 5, 2013

Obama Administration Proposed Social Budget Cut Places More Stress on Workers' Compensation

It has been reported that the Obama Administration will soon propose budgetary cuts in social welfare programs. Those cuts may produce further economic stress on the nation's financially beleaguered workers' compensation system.

A reduction or rationing of medical care through Medicare will remove the safety net available to
injured workers who have been denied workers' compensation benefits initially and are delayed in the administrative/adjudicatory process.

In those states when there is a "reverse offset." the workers' compensation insurance carrier takes an offset when combined benefits exceed the ACE (Average Current Earning) before the onset of lost time, reduction of COLA (Cost of Livening Assessment) the carriers will be required to pay more dollars.

"President Obama next week will take the political risk of formally proposing cuts to Social Security and Medicare in his annual budget in an effort to demonstrate his willingness to compromise with Republicans and revive prospects for a long-term deficit-reduction deal, administration officials say."

Click here to read the complete article: "Obama Budget Reviving Offer of Compromise With Cuts" NYT

Read more about the "reverse offset" and workers' compensation
Dec 01, 2009
The Gift That Keeps Giving: The SSA Reverse Offset. Social Security (SSA) has been subsidizing a select group of States since 1981. The workers' compensation insurance carriers in only those select States are permitted to ...
Aug 03, 2012
A recently published report by the National Academy of Social Insurance reflects that a "reverse offset" (coordination of benefits) still continues in 15 states. In reverse offset states, the insurance carrier gains the financial ...
Nov 19, 2012
A reverse offset state is one where the workers' compensation carrier may take the offset required under federal regulations limiting the total indemnity paid to an injured worker not to exceed a percentage of the workers' ...
Jul 26, 2011
Chaos will erupt in those States where Social Security takes a reverse offset on permanency payments. Workers' compensation insurance companies and employers will become responsible for the entire amount to be paid. 5.