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