What's Happening?
The Workers Compensation Research Institute (WCRI) has released a report indicating an increase in medical payments per claim across most states, following a period of stability post-pandemic. The report attributes
the rise to increased medical utilization, higher medical prices, and updates to state fee schedules. California experienced a 5% increase in medical payments per claim, while Delaware saw a 7% annual growth between 2021 and 2023. Pennsylvania reported a 14% rise in 2023, influenced by updates to the state's medical fee schedule. The study covers 18 states, representing approximately 60% of all workers' compensation benefit payments nationwide.
Why It's Important?
The increase in workers' compensation medical claims costs highlights the evolving landscape of healthcare expenses and their impact on businesses and insurers. Rising costs may affect insurance premiums and influence employer decisions regarding workers' compensation coverage. The report's findings underscore the need for stakeholders to address healthcare cost management and explore strategies to mitigate financial impacts. Policymakers may consider revising fee schedules and implementing measures to control medical utilization and pricing, ensuring sustainable workers' compensation systems.
What's Next?
As medical claims costs continue to rise, stakeholders may focus on strategies to manage healthcare expenses and ensure the sustainability of workers' compensation systems. Insurers may adjust premiums and coverage options in response to changing cost dynamics. Policymakers could explore initiatives to control medical utilization and pricing, considering factors such as fee schedules and healthcare regulations. The situation may also prompt discussions about the long-term implications of healthcare cost trends on businesses and the insurance industry.
