What's Happening?
A report from the Workers Compensation Research Institute indicates an upward trend in medical costs per claim across 18 states, following a period of stability post-pandemic. The increase is driven by
higher medical utilization, prices, and updates to state fee schedules. California experienced a 5% rise in medical payments per claim, while Delaware saw a 7% annual increase from 2021 to 2023, influenced by adjustments to its fee schedule based on the Consumer Price Index. Pennsylvania reported a 14% increase in 2023, linked to updates in its medical fee schedule. Wisconsin also saw a 6% annual rise from 2021 to 2023, following new legislation introducing a medical fee schedule for hospital services.
Why It's Important?
The rising medical costs per claim in workers' compensation highlight the evolving landscape of healthcare expenses for injured workers. These trends could impact employers, insurers, and policymakers as they navigate the financial implications of increased medical payments. States with significant increases may need to reassess their fee schedules and healthcare policies to manage costs effectively. The report's findings underscore the importance of monitoring medical expenses and utilization to ensure sustainable workers' compensation systems.
What's Next?
As medical costs continue to rise, stakeholders may explore strategies to mitigate expenses, such as revising fee schedules or implementing cost-control measures. The report's insights could prompt discussions among policymakers and industry leaders on balancing adequate care for injured workers with financial sustainability. Future studies may focus on the long-term effects of these trends and potential solutions to address the growing financial burden on workers' compensation systems.
