CALIFORNIA How Pharmaceuticals Affect Workers Comp Cost

Continuation of a synopsis of “Changes in Pharmaceutical Utilization and Reimbursement in the California Workers’ Compensation System,” available at http://www.cwci.org/

The Role of “Schedule II” Drugs in Rising Costs

The study identified a steady increase in the use of “Schedule II” medications – including oxycodone, fentanyl, morphine and short-acting barbiturates used to treat injured workers. These federally controlled substances, while having legitimate medical uses, also have a high potential for abuse or addiction.

The Institute’s data found the use of these drugs in:

1. 2002: nearly tripled from 0.4% to 1.1% of the 2004 prescriptions
2. 2005: fell back to 0.9%
3. 2006: took a sharp jump 1.3%
4. 2007: doubled to 2.9%
5. 2008: doubled again to 5.9% by the third quarter
6. While usage of Schedule II meds rose, the average amount paid rose also, tripling from $97.73 in 2002 to $279.75 in 2008. (workersxzcompxzkit)
7. With the rise of usage and reimbursement, Schedule II drug payments skyrocketed from 0.7% of California workers’ comp prescription dollars in 2002 to 18% of prescription payments in the first three quarters of 2008.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-786-8286.