Ohio BWC Monopolistic State Funds Mismanagement
I thought I would leave the Monopolistic State Funds alone as I had bashed them heavily over the last few months. I then read articles last week that pointed out a very large mistake by the Ohio BWC – Bureau of Workers Compensation. The overspending had to do with their pharmacy program since mid-2007.
Inspector General Tom Charles says the BWC failed to take steps to recover $14.5 million in available rebates from drug manufacturers from 2005 to 2008. The BWC also spent another $5.5 million on medications that were not approved by the FDA for treating certain conditions. The “icing on the proverbial cake” is the report also says the bureau has taken steps to recover rebates but still lacks procedures for changing its drug reimbursement policies.
A spokesperson for the BWC said the program was in disarray when the new administration took over in 2007 and that there had been may improvements instituted in the pharmacy program. I would have suggested they enter into a PBM (Pharmacy Benefit Management) with an outside vendor immediately that monitors the rebates. Companies such as CorVel(R) and others have these programs in place. There are software companies that also provide this tracking information.
One can easily find a PBM or any other type of vendor by referencing the vendor page at the yearly NWCDC Conference in Vegas. I recommend attending the conference for companies or organizations searching for vendors. You can talk with a number of vendors that provide the specialty that you are considering adding to your Worker’s Comp program.
This is where I usually say that all monopolistic state funds should privatize. I will not say anything as there are 20,000,000 reasons to privatize on the table right now. In this economy, every $ is critical.
©J&L Risk Management Inc Copyright Notice