About My Health Careers Internship MedBlogs Contact us
Medindia LOGIN REGISTER
Advertisement

Costs for Auto, Malpractice and Other Insurance may Vary as Per Study

by Dr. Enozia Vakil on April 10, 2014 at 10:21 PM
Font : A-A+

 Costs for Auto, Malpractice and Other Insurance may Vary as Per Study

Alterations in the costs for several major types of liability insurance may be done by the expansion of health insurance accomplished under the Affordable Care Act.

Automobile, workers' compensation and general business liability insurance costs may fall under the Affordable Care Act, while costs for medical malpractice coverage could be higher, according to the study.

Advertisement

Researchers say the changes could be as much as 5 percent of costs in some states, but caution there is considerable uncertainty surrounding such estimates. The findings are from one of the first systematic studies of how the Affordable Care Act could influence costs for liability and related lines of insurance.

"The Affordable Care Act is unlikely to dramatically affect liability costs, but it may influence small and moderate changes in costs over the next several years," said David Auerbach, the study's lead author and a policy researcher at RAND, a nonprofit research organization. "For example, auto insurers may spend less for treating injuries, while it may cost a bit more to provide physicians with medical malpractice coverage."
Advertisement

RAND researchers examined how the Affordable Care Act might operate across different liability lines and how the impacts might vary across states given existing laws, population demographics and other factors.

Liability insurance companies reimburse tens of billions of dollars each year for medical care related to auto accidents, workplace injuries and other types of claims. For example, auto insurers collectively paid $35 billion for medical costs associated with accidents in 2007, about 2 percent of all U.S. health care costs in that year.

But some of those costs may be covered by regular health insurance as more Americans become newly covered under the Affordable Care Act, according to the study.

As that happens, the cost of providing automobile insurance, workers compensation and homeowners insurance may decline. Ultimately, any cost changes experienced by insurance companies could be passed on to consumers through changes in premiums and coverage options.

Meanwhile, an increase in the number of people using the health care system may trigger a corresponding increase in the number of medical malpractice claims made against physicians and other health care providers, according to the study. Such a shift could drive malpractice costs modestly higher.

Researchers say there are many state-level variables that will influence any impacts on liability costs created by the Affordable Care Act. This includes items such as whether states require medical costs to be deducted from liability awards or whether states choose to implement the Affordable Care Act's optional Medicaid expansion.

While the study primarily focuses on the short-term impacts of health reform on the cost of liability insurance, RAND researchers also suggest that the Affordable Care Act could have additional long-run impacts.

Costs of liability insurance could be reduced further if reforms aimed at driving down health care costs are successful, for example. Other potential long-run changes include modifications of tort law, shifts in pricing of medical services, changes in the number of practicing physicians and increased efforts by Medicaid to recover a portion of injury payments.

"This study highlights the far-reaching impacts of the Affordable Care Act," said Jayne Plunkett, head of casualty reinsurance for Swiss Re, a reinsurance company that sponsored the study. "Businesses and policymakers need to understand how and why their risk profiles might change as the Affordable Care Act is implemented."



Source: Eurekalert
Advertisement

Advertisement
News A-Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
News Category
What's New on Medindia
Contraceptive Pills in Polycystic Ovary Syndrome (PCOS) Curtail Type 2 Diabetes Risk
Mushroom May Help Cut Down the Odds of Developing Depression
How to Battle Boredom during COVID
View all

Medindia Newsletters Subscribe to our Free Newsletters!
Terms & Conditions and Privacy Policy.

More News on:
Star Health and Allied Insurance ICICI Lombard General Insurance Company Limited Health Insurance - Ombudsman Health Insurance - Basics New India Assurance Policies Awareness about Healthcare Insurance in India Premium Calculation by Health Insurance Companies Fraudulent Health Insurance Claims Key Procedures for Filing a Healthcare Insurance Claim Latest on The New India Assurance Company Ltd 

Recommended Reading
Private Health Insurance Offered to Employers by Regions Insurance
Private insurers are coming forward to help companies cover their employees....
Health Insurance Premiums are Expected to Rise Due to Various Reasons
Due to increasing premiums employers increase employee co-pays, but the employee has a chance to ......
Canadians Spend More on Private Health Insurance
Spending by Canadians on private health insurance has more than doubled over the past 20 years, but ...
Awareness about Healthcare Insurance in India
A basic awareness about Indian health insurance for any layman for quick reference presented in a cr...
Fraudulent Health Insurance Claims
To educate the public regarding hazards of committing fraud in healthcare insurance claims and its i...
Health Insurance - Basics
Health insurance guarantees payments to a person in the event of sickness or injury.and works as pr...
Health Insurance - Ombudsman
Insurance Ombudsman institutions work for the purpose of quick disposal of the grievances of the ins...
ICICI Lombard General Insurance Company Limited
Major health care plans from the ICICI Lombard include complete health insurance ihealth plan, perso...
Key Procedures for Filing a Healthcare Insurance Claim
keep yourself well informed about the claim process and avoid frustration of your claim getting ......
New India Assurance Policies
The existing Mediclaim and Health Plus Medical expenses policies have been discontinued and Mediclai...
Premium Calculation by Health Insurance Companies
This article gives an insight as to how healthcare insurance policy premiums are collected by Insura...
Star Health and Allied Insurance
Star Health & Allied Insurance offers a convenient insurance for the corporate people when they tra...

Disclaimer - All information and content on this site are for information and educational purposes only. The information should not be used for either diagnosis or treatment or both for any health related problem or disease. Always seek the advice of a qualified physician for medical diagnosis and treatment. Full Disclaimer

© All Rights Reserved 1997 - 2021

This site uses cookies to deliver our services. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use