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Controlling workers' compensation costs for prescribed medication.

Beth Kuschner1

  • 1Drug Utilization Review Department, Progressive Medical, Inc.

The Case Manager
|September 28, 2006
PubMed
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Prescription drug costs in workers' compensation are rising significantly. It is crucial to differentiate between drugs for work-related injuries and other conditions to manage expenses effectively.

Area of Science:

  • Occupational Health
  • Healthcare Economics

Background:

  • Prescription drug costs represent a growing concern within workers' compensation systems.
  • Data from the National Council on Compensation Insurance (NCCI) shows a notable increase in the prescription drug share of total medical costs between 1997 and 2001.
  • Currently, prescription medications account for 10% of all medical expenditures in workers' compensation cases.

Purpose of the Study:

  • To highlight the escalating costs of prescription drugs in workers' compensation.
  • To emphasize the importance of distinguishing between medications for work-related injuries and unrelated conditions.
  • To provide guidance on managing prescription medication expenses.

Main Methods:

  • Analysis of historical cost-sharing data for prescription drugs in workers' compensation.

Related Experiment Videos

  • Review of factors contributing to the rise in prescription drug utilization and costs.
  • Identification of strategies for cost containment through appropriate drug utilization review.

    • Main Results:

    • The proportion of medical costs attributed to prescription drugs in workers' compensation has increased substantially over a defined period.
    • A significant portion of workers' compensation medical spending is now allocated to prescription medications.
    • The need for careful evaluation of prescription drug necessity for work-related injuries is underscored.

    Conclusions:

    • Effective cost management in workers' compensation requires careful scrutiny of prescription drug prescriptions.
    • Differentiating between treatments for work-related injuries and other ailments is essential for controlling medication expenses.
    • Implementing informed questioning and information-seeking strategies can help mitigate rising prescription drug costs.