The costs per claim of medical care to treat injured workers in Indiana were higher than most states and growing rapidly, according to a recent study by the Workers Compensation Research Institute (WCRI).
The report, Benchmarks for Indiana, CompScope 14th Edition, demonstrates that medical costs per workers’ compensation claim in Indiana were 17 percent higher than typical of the 16 states in the WCRI study.
At an average of 8 percent per year from 2006 to 2011, medical costs per claim grew faster in Indiana than in the other study states.
The study notes that recent legislation addressed hospital costs, which were a key driver of the higher medical payments. The measure, House Bill 1320, enacted a hospital fee schedule, effective July 2014, with reimbursement set at 200 percent of Medicare.
“The study will help policymakers and other stakeholders understand how the Indiana workers’ compensation system measures up with other states and serves as an invaluable tool in monitoring system changes,” said Ramona Tanabe, WCRI’s deputy director and counsel.
The study also found:
- Overall workers’ compensation costs per claim were lower in Indiana than in many of the 16 study states, as lower indemnity payments (income benefit payments) offset higher medical costs.
- Indemnity payments per claim were among the lowest of the 16 states, in part because of lower maximum statutory benefits, also addressed by House Bill 1320.
- It took longer, on average, for injured workers to receive their first indemnity payment than in most states.
Paste the following link in your browser to purchase this report: http://www.wcrinet.org/studies/public/books/BMcscope_multi14_IN_book.html.
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