Some alarming facts about costs of claims
A recently released report by Progressive Medical, Inc, 2010 Drug Spend, reveals changes in medication spending on Workers’ Compensation claims from 2008 to 2009 for Progressive Medical clients, as well as key factors that may influence future expenditures, such as price, utilization and product mix changes.
Key highlights from the 2010 Drug Spend Analysis include:
AWP inflation was 5.2%, which comprises an 8.1% increase for brand products and a .2% increase for generics.
While the number of days supply dispensed per prescription decreased by 1.5%, prescriptions per injured party increased 4.2%.
The net effect of increased use of generics overall from 2008 to 2009 is a 2% reduction of total medication spending.
Fourteen of the top 25 medications show a decrease in spending per injured party from 2008 to 2009.
Narcotic analgesic-acetaminophen combinations currently represent 20% of Workers’ Compensation prescriptions with more than 90% dispensed as generic.
Earlier studies by National Council on Compensation Insurance (NCCI) found that the longer a claim is open, the higher the prescription costs – while prescription costs on average amount to 3% of the claim during the first year, it climbs to 31% after seven years, with drug spending alone averaging $27,000 annually.
There’s more to be learned from studies related to health care costs. The 2010 health plan trend survey by The Segal Company found that error rates typically range from 2% to 5% of total claims paid.
Errors include covering services not provided, paying for services not performed, duplicate payments and circumventing referral requirements.
Another survey by the International Foundation of Employee Benefit Plans in Brookfield, Wis. found how claims are handled plays a vital role in shaping the employee’s view of the quality of the benefits.
Want to learn more?
We invite you to attend Taking Control of Your Workers Compensation Costs!
You will learn:
– 3 things every employer must do to reduce Workers Compensation Costs
– The steps to take before and after an injury occurs that could reduce cost by 50%
– Cost reduction strategies to benefit any business
– The effect of workers compensation on business value
Where: Best Western Lehigh Valley- Bethlehem, PA
When: April 7, 2011
Registration begins at 3:00pm
Workshop from 3:30-5:00pm
We invite you to stay for a networking mixer directly following the workshop!
For more information please call 1-888-366-1000 ext. 126 or email email@example.com
Another value-added benefit for member of the Lehigh Valley Economic Developement Corporation!