Texas Reforms – WCRI Conference – Live blogging
The new Texas reforms were presented along with the preliminary results.
This is a very informative conference-session. The current session is pre- and-post reforms in the state of TX.
This example could be applied to other states with upcoming or in-place reforms
- Total costs were lowered post-reform
- Medical costs were the drivers for Texas and caused the need for reforms
- Utilization of non-hospital services plunged. Usually the utilization rates increase when the medical costs factors are lowered. Other cost factors in Texas showed an increase in utilization vs. the pre-reform years
- Heavy pre-authorization requirements
- Most impact were noticed in 2011 and 2012 claims
- Decrease in chiropractic care (-8.5%). This is a dramatic increase in such a short amount of time.
- Only California had higher cost claims that included chiropractic care.
- As with CA, TX medical cost containment costs increased, California cost containment became prohibitively expensive
- As compared with others states, more monitoring of expenses increase utilization review- this is an expected result that has appeared in most states.
As a side note, I have performed many studies that indicate a decrease in medical rates is counteracted by an increase in utilization. This is on a state-by-state and type of treatment basis. We shall see more results soon on the Texas reforms.
©J&L Risk Management Inc Copyright Notice
2 Responses
Nice summary, James.
Thanks. This is a great conference