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Workers Compensation Medical Fee Schedules – Not In These States

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Workers Compensation Medical Fee Schedules

Workers Compensation medical fee schedules do cut comp costs.

Picture of stethoscope dollars and pills Workers Compensation Medical Fee Schedules Cost
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After my last post, I received the question – Which states still do not have a fee schedule for their Workers Comp medical bills? After some research, I found out that there were now only five states left without a fee schedule. I did not delve into why they do not have one. I wanted to see if their medical bills were higher such as in the case of Tennessee before they enacted their modified fee schedule.

The five are:

  • Iowa – was actually lower than the neighboring states with fee schedules
  • Indiana – medical payouts were 33% higher than the median value.
  • Missouri – were actually lower than the neighboring states with fee schedules
  • New Hampshire – 73% of claim payouts were for medical, while neighboring states with fee schedules were at 49%.
  • New Jersey – data is very hard to find on NJ as they have their own rating bureau.
  • *Tennessee – even though they now have a fee schedule, their prior medical payouts were 36% higher than the median value.

This led me to research into whether these states have higher Workers Comp medical bill costs. What I found was that the states without a fee schedule were much more expensive than states with a fee schedule. Iowa and Missouri have both proved my theory as not completely accurate.

I could research the medical costs further, but for now I will just say that any state with runaway medical costs such as NH and IN should immediately enact fee schedules. As IA and MO have their medical costs under control, no fee schedule may be needed.  

2020 Update – Iowa and Missouri became expensive states.  Either state does not have a worker’s compensation medical fee schedule as of this year. 

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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