5% Rate Increase Approved – Indiana – Needs Medical Fee Schedule
Indiana just approved a 5% rate increase for Workers Comp advisory rates. I thought enough time had passed that most of the remaining states without fee schedules would have followed suit to help their employers receive the benefit of an easy Workers Comp savings method.
States such as Tennessee have reduced their Workers Comp payouts by enacting a fee schedule. I am aghast as to why Indiana does not enact even a limited fee schedule. Many studies have shown the need for a fee schedule.
One of the main rebuttals against fee schedules used to be that physicians and other medical practitioners, along with clinics and hospitals would not see injured employees.I have yet to see any physician turning away Workers Comp patients.
With an authorization from the claims department, WC payments are a sure thing – usually. Even if Workers Comp may not cover an accident, health insurance will usually step in and cover the medical treatment.
We had reviewed and consulted on a few Indiana claims in the past few years. The Usual and Customary fees seemed to be one long negotiation using bill repricers basing the charges on a percentile and then having the hospital dispute those percentiles.
The injured employee, of course is receiving notices that they are going to be referred to a collection agency while all the negotiations are occurring over time. Medical providers want their bills to be paid regardless of the payer.
Indiana had the highest medical costs in its region in 2009 – 2010. In my opinion, you will see Indiana have inflating medical costs over the next few years unless a fee schedule is enacted soon.
I have not read the articles explaining why the increase was recommended by NCCI. I think we all already know the reason.
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