No Fee Schedules Cost Employers $$$
The lack of Fee Schedules cost employers dearly in extra workers compensation premiums.
After looking at the chart again from yesterday’s article on WCRI’s 16 state report on medical costs, there is an obvious trend that is very apparent on Workers Compensation medical costs.
The chart points out an obvious fact that has appeared in this blog many times. Fee schedules do save employers Workers Comp premiums or direct payout for self-insureds.
One can look at the chart for just a few seconds and the fact becomes apparent – states should enact fee schedules if one does not exist.
From the chart, four of the top five in hospital costs do not have fee schedules for hospitals. There is nothing like a chart to point out something which is beyond obvious.
The states- Iowa, Indiana, Virginia, and Wisconsin have higher hospitalization and overall medical costs. Employers in these states are sometimes in networks provided by their carrier or TPA. PPO reductions by the medical networks may be the saving grace for employers in these states.
Update – In 2017, Virginia added a fee schedule to their Workers Compensation rules.
North Carolina is in a hybrid situation as the state did enact a fee schedule of sorts for hospitals. The state also has had a fee schedule in place for many years.
One would expect the non-fee schedule states to at least attempt to legislate some type of fee schedule in the coming months. However I said the same thing in 2007.
For more information please click on the links to see previously written articles on fee schedules. The lack of fee schedules cost employers every time they renew a WC policy.
©J&L Risk Management Inc Copyright Notice