Since medical claim costs continue to escalate outpacing inflation, companies should take a closer look at what are the cost drivers in their Workers’ Compensation programs. Utilization remains the most significant driver of medical costs. The most popular drug group prescribed for claimants were anti-inflammatory and pain relief drugs, these account for about one-half of the total amount paid for drugs.
Medical cost drivers according to NCCI are claim severity which continues to trend upward. Some of the factors cited as being responsible for the ongoing escalation of medical severity in worker’s compensation claims include price increases, the growth in the number of treatments, and the shift in the mix of the type of claims and treatment service provided.
How is your program doing? At KRT Insurance Services we can help you answer that question!
