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Tuesday, May 13, 2014

Aging Workers' Compensation

The workers' compensation premium model is based on wages of the workers, ie. payroll. It computes wages as factor to compute temporary disability benefits and theoretically permanency. It does not equate to medical costs which are much higher for an aging demographic. In act medical costs have continued to soar as the workers begin to age in place, ie. at work.

Today the Pew Research Organization published a study about the massive demographic change of the American population and what can be anticipate in the decades ahead.

Will age now become a factor for premiums or will the medical be subsumed into Federal government's Affordable Care Act?

"Demographic transformations are dramas in slow motion. America is in the midst of two right now. Our population is becoming majority non-white at the same time a record share is going gray. Each of these shifts would by itself be the defining demographic story of its era. The fact that both are unfolding simultaneously has generated big generation gaps that will put stress on our politics, families, pocketbooks, entitlement programs and social cohesion."
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