Huge State Variations @ Workers Comp Pain Management – NCCI Report
Workers Comp pain management costs have increased sharply over the last two decades. One medical cost that I noticed in our claims consulting for employers and agents over the years started with pain management – particularly topical medications such as Lidocaine patches.
Certain states seemed to have much more pain management treatment. I never analyzed which states had more workers comp pain management than others. NCCI performed a deep dive into the numbers.
If you are a Workers Comp adjuster, risk manager, or anyone who deals with claims – including self-insureds – take a few minutes to look at the summary of the new NCCI report. Some of the variations shocked me a little. For instance, how can neighboring states such as Louisiana and Arkansas deviate so much with the amount of claim dollars spent on one area of medical treatment? See the chart below.
My Notes From 2025 NCCI Conference on Workers Comp Pain Management
Changes in pain management have been driven by reductions in opioid prescriptions and enhanced treatment techniques for workplace injuries.
15% less RX since 2012
Topicals increased 50% since 2012
31% of all WC claims have injections for pain
Journavx – does not affect the brain, no euphoria, 30 times more expensive than generic Vicodin
Key Findings From The Report
- Even after controlling for a mix in diagnoses, pain management costs vary significantly by state.
- The costs of treating pain through physical medicine and major surgery have increased across almost all states. This increase, however, has been partially mitigated by a sharp decline in drug costs, primarily driven by a reduction in opioid usage.
- Pain management (PnM) paid per claim increased on average by 1% per year, with the largest increase at 5.3% in Louisiana and the largest decrease at 3.0% in Alaska.
Bottom Line on Workers Comp Pain Management
Take a few minutes and look over the NCCI Report. The time spent will be well worth it. The report should help with reserving files.
