Workers Comp Health Costs Were Recently Controlled By A State Government

Most of the Workers Compensation data has shown that medical costs have been outpacing all other costs in Workers Comp claims. Medical costs are now approaching 60% of the total claim value in many states.

Many state governments have actually reduced Workers Comp medical costs by becoming more involved in the claim process. This is one instance of a program that is partially administered by state governments. I am referring to fee schedules. Fee schedules are one of the most efficient and effective methods to reducing Workers Compensation costs. All states that have enacted fee schedules in the recent past have experienced a reduction in the medical costs per Workers Compensation claim.

I had recently read an article in the National Underwriter that the state of Tennessee had lowered their Workers Comp medical costs significantly by $1,300 per claim. Stop and think for one moment. What individual medical charges would have been reduced the most by a Workers Comp fee schedule in Tennessee?

The major fee reductions per types of services were as follows:

• Outpatient
• Minor radiology – 15%
• Physical medicine – 12%
• Inpatient
• Minor radiology – 43%
• Major radiology – 34%
• Physical Medicine – 23%

These are very stark numbers. The state of Tennessee is to be congratulated on their efforts to help cut workers comp costs. Their medical costs are now more in line with the rest of the states with fee schedules.

There are definitely ways that a state government can aid employers in reducing Workers Comp costs. This is a prime example.