Workers Comp and Inflation

April 3, 2023

A look at drug costs and workers’ comp

  • From 2012 to 2021, the average drug-paid cost per claim decreased by about 2.6% per year, according to a new report by the NCCI entitled Inflation and Workers Compensation Medical Costs.
  • The annual reduction in drug payment per claim varied across four regions, ranging from 2.0% in the Southeastern region to 3.9% in the Western region.
  • The price of prescription drugs grew at an annual rate of 3.7%, only to be offset by a 6.0% decline in the type and number of prescriptions.
  • Opioid claims1 saw the largest decrease in drug costs, largely due to a reduction in both opioid and nonopioid prescriptions.
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Texas releases new workers comp data 

  • The Texas Department of Insurance, Division of Workers’ Compensation released the latest update to its report that provides information on the impact of COVID-19 on the state’s workers’ compensation system.
  • As of February 5, 2023, insurance carriers reported nearly 98,000 COVID19 claims and 468 fatalities to DWC. A little more than half of these claims and fatalities involve first responders and correctional officers.
  • Claims with positive test or diagnosis: More than two-thirds of all claims (70%) involved injured employees who tested positive or were diagnosed with COVID-19.
  • Denials and disputes: Insurance carriers denied less than half (38%) of COVID-19 positive test claims.
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Guilty plea in fraud scheme

  • An unlicensed labor broker for the construction industry has pleaded guilty plea to participating in a fraud scheme to evade more than $1 million in workers’ compensation premiums.
  • According to Manhattan prosecutors, Salvador Almonte, Jr. underreported the size of his companies and lied to insurance carriers about the work being performed by his employees.
  • Attorney said he was aided in his deception by former insurance broker Steven Asvazadourian who admitted his guilt in 2020, and the scheme left more than a hundred construction workers underinsured.
  • Prosecutors said Almonte operated a multi-million-dollar construction labor supply business in New York City as an unlicensed labor broker.
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Government looking at workers comp for athletes

  • Ontario is reviewing concerns about workers’ compensation for the CFL Players’ Association and other professional athlete unions.
  • The review is part of the provincial government’s larger plans to improve compensation for injured workers.
  • The statement comes after a lobby of athlete unions led by the CFLPA called for changes to workers’ compensation across Canada.
  • Pro athletes are currently exempt from workers’ compensation across Canada, and it’s up to each province to determine if it will extend the coverage.
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