2014 Workers Comp Prescription Cost Increase – Bargain

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2014 Workers Comp Prescription Cost Increase

The 2014 Workers Comp Prescription Cost was actually a bargain when compared to the general public’s cost increase.  The results were totally surprising as I had thought the increases would have been very similar.

Graphic of 2014 Workers Comp Prescription Cost Increses
123RF

The Google search results from link for 2014 Workers Comp Prescription Cost I performed can be followed by clicking on the word the link in this sentence. Update – the link expired – replaced with new link.

A  Risk Manager from a large governmental organization asked me to include any Google searches that I do for articles when possible.

As mentioned in my previous article on WCRI’s recent release of Medical Cost Containment measures, Indemnity was the original driver for most of the Workers Comp costs.

Medical costs, (especially prescription costs), overtook Indemnity a few years ago and will likely be the main driver of increases in WC payouts for many years in the future.    However,  the overall Workers Comp Prescription cost increase was anemic when compared to the cost burden on the general public.

Pharmacy 2014 Workers Comp Prescription Cost At Pharmacy
StockUnlimited

According to Helios , Workers Comp 2014 prescription cost or prices increased 3.9% over 2013.  According to Express Scripts drug trend report, the increase for prescriptions overall was 13.1% when compared to 2013.

I went to great lengths to make sure that I was not doing the apples versus oranges comparison on the numbers.  There was a plethora of different measurements on the prescription prices increases.

The basis for the Workers Comp increase was supposedly the large increase in prices of generic drugs.  The price increase basis for the general public was due to specialty drugs.  The cost of these specialty drugs increased by an astounding 30.9%

Did Workers Comp PBM’s and medical networks do their job as far as controlling prices increases?  From the numbers, one would have to say yes.

If anyone has a different set of numbers, I am open to adding them into this article as there are a large number of articles with somewhat conflicting numbers.

©J&L Risk Management Inc Copyright Notice

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James Moore

Raleigh, NC, United States

About The Author...

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