The cost paid for workers’ compensation insurance claims in Louisiana averaged 35 higher than the typical study state, according to a recent report from the Workers’ Compensation Research Institute (WCRI.
In its “CompScopeBenchmarks for Louisiana, 10th Edition,” WCRI discovered injured workers in Louisiana were off the job longer than in other states with similar workers’ comp benefit systems, leading to higher-than-typical indemnity benefits per claim than in other study states, even though the workers’ weekly benefits were capped at lower levels in Louisiana. Also, medical costs and expenses per claim were among the highest of the 15 states in the study.
According to the study, indemnity benefits per claim with more than seven days of lost time were 36% higher than the typical study state as a result of a longer duration of temporary disability. WCRI claims injured workers in Louisiana were off work 34 weeks on average — 9 to 10 weeks longer than Massachusetts and Pennsylvania and 15 weeks greater than Michigan.
Medical costs per claim were 20% higher than in the typical study state, the result of higher utilization and higher nonsurgical prices paid. Also, the duration of medical treatment was 6.5 weeks (16%) longer than in the median study state.
WCRI notes despite minimal change in the medical fee schedule rates since 1994, the 2006 medical fee schedule in Louisiana was greater than the median of 42 states with fee schedules for all service groups except surgery. Payments per claim for hospital outpatient services were higher than the median study state. Hospital inpatient payments per claim, however, were lower compared to other study states.
Expenses to manage claims were among the largest of the study states, including greater than average medical cost containment expenses per claim, defense attorney payments, and medical-legal expenses per claim. (workersxzcompxzkit)
Finally, WCRI noted that defense attorney payments per claim greater than seven days of lost time were the largest among the 15 study states.
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