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No Fee Schedules Cost Employers WC $ – Virginia Update


No Fee Schedules Cost Employers $$$

The lack of Fee Schedules cost employers dearly in extra workers compensation premiums.

Dollar Cash Fee Schedules Cost Employers Picture

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.

Hand Drawing Fee Schedules Cost Employers Upward Arrow With Dollar

Hospitals and other medical providers in states that have enacted fee schedules are doing well in such states as Tennessee and Texas.

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.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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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