Inflation-based Fee Schedules Bloat Costs

A report Thursday from the Workers Compensation Research Institute showed that the cost of workers’ compensation surged in those states that update fee schedules based on general inflation rather than fluctuations in medical costs.
Four states that adjust their WC medical fee schedules based on inflation measures — Alabama, Delaware, Illinois and Oregon — saw a 9% increase in June 2022.
States that typically use Medicare rates to set fee schedules logged smaller increases in their cost for treating injured workers, the report found.
The report comes just days after the latest U.S. consumer price index reading that showed inflation in May was cooler than expected, up 3.3% from a year earlier. Consensus estimates were looking for a 3.4% increase.
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Connecticut State Senator Paul Cicarella is alleged to have failed to report some other sources of income while receiving workers’ compensation payments.
CTInsider on Wednesday reported that Cicarella collected $123,000 in workers’ compensation payments between December 2008 and July 2013 without reporting three other sources of income.
The payments were made prior to Cicarella becoming a state senator, after he was injured while working for the state as a correctional officer.
“Paul Cicarella voted against reasonable pay and benefits for state employees back in April,” said Steve Gifford, vice chair of the North Haven Democratic Town Committee. “It’s unconscionable that he would exploit the Workers’ Compensation program for his own benefit while denying civil servants.”
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The West Virginia Supreme Court has told a lower court that it must hear a workers’ compensation claim that was rejected after the injured worker pursued a related product liability claim.
Last week’s ruling concerns allegations by an employee of RPM International that he was exposed to toxic substances from 1996 to 2018.
He later filed a workers’ compensation claim after developing neuropathy and dermatitis.
However, before that claim was decided, he separately sued several chemical companies over alleged toxic exposure to multiple chemicals.
His WC claim was rejected by the state.
The West Virginia Supreme Court’s annual report for 2022 showed 135 workers’ compensation appeals to the West Virginia Intermediate Court of Appeals.
That same year, in which the Intermediate Court didn’t start taking cases until July 1, 2022, there were 83 new filings to the state Supreme Court.
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ReEmployAbility and WorkCompCollege collaborated to launch an online resource for injured workers to share information.
Dubbed “The Voice of the Injured Worker,” the platform is described as a resource to “empower and support individuals affected by workplace injuries, as well as educate stakeholders within the Worker’s Compensation industry.”
According to the announcement, the video series on the platform will include: Personal stories and testimonials from injured workers; resources and tools to navigate the workers’ compensation process; and, feedback and perspectives on navigating worker’s compensation claims.
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With the rise of prescription topical treatments, Optum has assembled a collection of resources to help workers’ compensation professionals better understand the usage, costs, and regulatory status of the medications.
The healthcare firm’s “Topical Toolbox” seeks to address what it describes as “aggressive overprescribing and physician dispensing of expensive topical medications,” particularly private label topicals.
The collection of educational materials on topicals published over the last four years includes a selection of whitepapers, podcasts and other learning tools.
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