A growing number of narcotics prescriptions in workers’
compensation claims has left many employers struggling to foot the bill,
according to reports issued by the National Council on Compensation Insurance
Inc. (NCCI).
According
to NCCI, an average of 0.79 narcotics prescriptions were issued per
workers’
compensation claim in 2011, the most recent data available at this time. When compared to 0.77 in 2010 and 0.72 in 2009, it becomes clear that narcotics are being prescribed at a steadily increasing rate in the treatment of injured workers, and when combined with the soaring costs of prescription drugs, many employers are faced with trying to manage escalating workers’ comp expenses.
compensation claim in 2011, the most recent data available at this time. When compared to 0.77 in 2010 and 0.72 in 2009, it becomes clear that narcotics are being prescribed at a steadily increasing rate in the treatment of injured workers, and when combined with the soaring costs of prescription drugs, many employers are faced with trying to manage escalating workers’ comp expenses.
The same NCCI report revealed that the cost of narcotics
prescriptions climbed to $59 per claim in 2011, up from $55 in 2009.
Furthermore, the number of claimants receiving five or more narcotics
prescriptions increased to 5.6 percent in 2010, a significant boost from 4.3
percent in 2005.
Doctor Dispensing
Leads to Higher Prescription Drugs Cost
Why are narcotics being prescribed to injured workers at a
higher rate, and why are the costs of these drugs steadily increasing? The
Workers Compensation Research Institute (WCRI), headquartered in Cambridge,
Massachusetts, has released two studies linking these increased costs to
physician-dispensed prescription.
According
to one WCRI study in Pennsylvania, the cost of physician-dispensed
Vicodin was three times more than when the narcotic was prescribed to injured
workers by a pharmacy ($1.22 per pill compared to $0.37 per pill).
At the same time, doctors are dispensing workers’ comp
prescriptions at an increased rate. In 2008, Pennsylvania doctors dispensed
just 17 percent of all workers’ compensation prescriptions for a total of 18
percent of all workers’ comp pharmacy spend. However, in 2011, Pennsylvania
doctors dispensed 23 percent of all workers’ comp prescriptions and received a
whopping 38 percent of all workers’ comp pharmacy spend.
This trend isn’t specific to Pennsylvania. It’s taking place
all across the country, leading many to wonder whether or not it’s fair for
doctors to be paid more than a pharmacy for dispensing the same drug.
Another issue with physician-dispensed drugs is that doctors
sometimes compound drugs, allowing them to create prescriptions that can be billed
without a fee schedule. They also have the ability to charge a dispensing fee.
All of this adds up to higher costs for employers and insurers while also
opening the door to narcotics use and abuse by injured workers.
How Employers can
Combat Prescription Drug Costs
Faced with all of this information, what can employers do to
contain the rising costs of prescription drugs in workers’ comp cases?
It starts with making sure your company uses the right
doctor. Most states give employers the right to direct injured workers to a
doctor of the employer’s choosing, and even if you don’t have that power, you
still may be able to suggest the employee go see a particular doctor. Finding a
doctor you trust and can cultivate a good relationship with can help you avoid
situations where narcotics are overprescribed.
It’s also important for employers to have their medical
bills professionally audited to ensure there are no overcharges for
prescription drugs. Billing mistakes happen regularly, and they can be a source
of wasted spending when unnoticed by payers. Partnering with an experienced
medical bill review company could help employers save significant sums of money
by avoiding erroneous charges.
While the trends in increasing prescription drug costs are
alarming and warrant concern, employers still have the power to control costs
when they take the right steps.
I believe there's a new app that can you people find a cheaper medicine.
ReplyDeletePrescription Drugs
The blog was absolutely fantastic! Lot of great information which can be helpful..Steve Walker established Walker Law Group in order to provide innovative, efficient and responsive legal services to his clients.
ReplyDeleteWorkers Compensation Claims