WCRI Study: Few New Initiatives Launched in Workers' Compensation Arena

Jan. 9, 2002
The adoption of new managed care and medical cost containment initiatives for workers compensation slows as the focus shifts to evaluating programs now in place.

The adoption of new managed care and medical cost containment initiatives in the nation's workers compensation system has slowed in recent years as the focus has shifted to evaluating programs now in place, according to the Workers Compensation Research Institute (WCRI).

The institute recently released the seventh edition of "Managed Care and Medical Cost Containment in Workers' Compensation: A National Inventory, 2001-2002." The National Inventory also found:

  • There have been few new utilization management initiatives enacted or promulgated since 1997.
  • No new jurisdiction has mandated the use of managed care in workers' compensation since 1997 and, in fact, some states have eliminated such a mandate.
  • There is a large and increasing variability of fee schedule levels across states, particularly those states with high fee schedule rates while those at the low end remain static.

"The rapid growth of workers' compensation medical expenditures in the early 1990s led to growth in the number and variety of medical cost containment laws and regulations adopted between 1992 and 1997," said Dr. Richard Victor, executive director of the Cambridge, Mass.-based WCRI. "However, since 1997, there have been few new initiatives."

For example, since 1997 only a handful of new utilization management initiatives have been implemented by law or regulation. Also since 1997, no jurisdiction has mandated the use of managed care and no new jurisdiction has added treatment guidelines as a cost-containment method.

In fact, Florida eliminated its managed care mandate system-wide and Vermont dropped its managed care mandate for the residual market.

The National Inventory comprehensively documents what strategies are currently authorized and in use in each jurisdiction as well as the programs in place to evaluate "what works."

Examples of evaluation efforts include the development and pilot test of a patient evaluation survey in California; the measurement of the effect of treatment guideline usage on medical outcomes and costs in Colorado; the identification of measurable indicators to determine the effect of managed care plans on the quality of care in Florida; and a project on quality of care outcomes in Washington.

"These evaluation efforts, in combination with the lack of new types of cost containment initiatives, suggest an emerging tendency to take a close look at the effects and results of past innovation before moving forward with a new round of activities," observed Ramona Tanabe, the report's lead author. "Another area of interest is the impact of cost containment initiatives on the quality of care received by injured workers," she said.

The new edition of the National Inventory updates information on initiatives in place or planned as of May 2001. The cost containment strategies reviewed by jurisdiction include: medical few schedules, regulation of hospital charges, medical and hospital bill review, choice of provider, treatment guidelines, utilization review/management and managed care.

For more information about the National Inventory, visit the WCRI Web site at www.wcrinet.org/whats_new.html.

edited by Sandy Smith ([email protected])

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

Sponsored Recommendations

Fitting in Fast: Making a Safe Workplace for New Hires

Sept. 12, 2024
Over a third of nonfatal injuries happen to workers who have been with their current employer for less than a year.

Elevating Safety: Empowering Supervisors to Become Safety Advocates

Aug. 27, 2024
Explore the skills, knowledge and techniques that supervisors need to effectively manage the safety of their crew. This guide will examine the causes and symptoms of supervisory...

Top 10 Causes of Distracted Driving—and What They All Have in Common

Aug. 27, 2024
The results reveal the top ten causes of distracted driving, and make it clear that not all distractions are created equal.

Spotting Workplace Safety Heroes: A Guide to Identifying Your Champions

Aug. 27, 2024
No two workplace safety champions are identical. But almost every single one of them has at least one standout quality that helps them excel. Here are some of those qualities ...

Voice your opinion!

To join the conversation, and become an exclusive member of EHS Today, create an account today!