Workers Comp Medical Authorizations – Adjusters’ Bane Part 2
One of the tasks that claim departments have struggled with over the years starts with a phone call from a medical provider. Workers Comp medical authorizations have become more complicated as the medical sciences have advanced in leaps over the last few decades.
Some of the blame can be placed externally with the insured employers filing first reports of injury (FROIs) late. Late FROIs, measured as lag time, can easily start a process where the claims department reaches critical mass.
I had written on and coined the two terms zombie phone calls and twilight zone phone calls. This situation occurs when medical providers of any type call into a claims department and requests workers comp medical authorizations to guarantee payment for their services. If the adjuster has not seen the FROI, then they cannot authorize anything. This frustrates the adjuster and medical provider.
Workers Comp Medical Authorizations Lost In Shuffle
Sometimes claim departments can lose a med auth request in a large number of incoming calls and emails during their workday. That remains a reality – not an excuse. Some workers comp medical authorizations have to “cross many desks” if the medical treatment is estimated to be over a certain amount.
When J&L performs loss run, reserve, or claim reviews, we see that this remains a struggle at certain TPAs and carriers. The claims that have rehab nurses/field case managers usually do not have the same concern as the rehab nurse is can filter the workers comp medical authorizations more expediently.
Fixing Authorizations – American Medical Association
I was reading a Business Insurance (free and paid subscriptions – worth it) article that pointed that linked to a website known as fixpriorauth.org.
The website conducted a survey of medical providers that contained shocking numbers. The AMA created a website (see above link) due to this concern. The Fix Prior Auth website does not single out any line of insurance. Let us look at a few stats from the survey – (PA = Prior Authorization Delay)
- 30% of physicians surveyed said that PAs caused a serious adverse event for their patients
- 79% of treating physicians reported treatment abandonment due to PAs
- 94% of physicians experienced treatment delays due to PAs
The above link also contains an Employers Toolkit that can be downloaded – and should be – to examine a few aspects when an insured is searching for or renewing their policy or TPA agreement. TPA and carrier claim departments should also download it as an idea generator on how to facilitate the authorization process.
I know this study was not directed specifically at workers comp – but health is health even in WC claims. For the AMA to create a subsite just to address the issue shows the importance of fixing workers comp medical authorizations.