Lots happening in the workers’ comp world these days – here’s what caught my attention this week.
WCRI released its CompScope report, which is actually 15 separate reports covering 16 states. I’ll be reviewing it in detail next week; for those who can’t wait you can find the summary of the news on Illinois here. WCRI will be releasing other highlights over the next couple of weeks.
The good news in IL is the change to the fee schedule has had the desired effect; costs are about 20% lower. That’s the good news; but all is not rosy.
- PT continues to be problematic; utilization in IL is much higher than average among CompScope states at 25 visits per LT claim. Only PA, with 27, is higher…
- Surgery costs per claim were also highest among the study states.
More work to do in the Land of Lincoln.
Several states are looking hard at implementing formularies; Arkansas is considering adopting ODG’s, scheduling a public hearing on that proposed change for later this fall.
There is considerable interest in Washington’s formulary. CWCI’s analysis of the ODG and WA formularies and implications of implementing them in the Golden State has generated quite a bit of interest; with projected annual savings ranging from $124 million to $420 million that’s not surprising.
Notably, Ohio’s formulary – which is truly closed, has resulted in almost no “non-formulary’ drugs dispensed to claimants. While it is not as well known as TX and WA, the OH formulary, adoption process, and results show just how effective a well-managed formulary and drug management program can be.
WCRI’s hosting a webinar on the potential impact of adoption of the ODG formulary in other states. Led by Dr. Vennela Thumula, the one-hour webinar is on Thursday, Nov. 20, 2014 at 2 p.m. ET (1 p.m. CT, 12 noon MT, and 11 a.m. PT).
For those interested in the future of the workers’ comp world – which should include anyone working in the work comp industry, a lengthy piece on the future of international labor markets by The Economist is worthy of your attention. Very well-written (as is typical for the Economist), they key points (quoting the article) are: [emphasis added]
- the rise of machine intelligence means more workers will see their jobs threatened. The effects will be felt further up the skill ladder, as auditors, radiologists and researchers of all sorts begin competing with machines. Technology will enable some doctors or professors to be much more productive, leaving others redundant.
- wealth creation in the digital era has so far generated little employment. Entrepreneurs can turn their ideas into firms with huge valuations and hardly any staff.
- these shifts are now evident in emerging economies. Foxconn, long the symbol of China’s manufacturing economy, at one point employed 1.5m workers to assemble electronics for Western markets. Now, as the costs of labour rise and those of automated manufacturing fall, Foxconn is swapping workers for robots
Time to get to work – the annual Health Strategy Associates Halloween party is tonight!