A new study from the Workers’ Compensation Research Institute (WCRI) shows workers’ compensation costs per claim for medical care of injured workers in Maryland were among the lowest of 15 states in part due to a lower fee schedule. The study showed lower prices paid for non-hospital services and typical utilization of most non-hospital services led to lower medical costs per claim in Maryland.
Another WCRI study reported that even after fee schedule went up in 2006, the overall fee schedule rate in Maryland was still among the lowest of the 42 states with workers’ comp fee schedules. Despite the lower fee schedule rates, the WCRI study “Comparing Outcomes for Injured Workers in Michigan,” containing information about worker outcomes in 11 states, reported Maryland workers still noted generally typical access to and satisfaction with care. As a result, the Maryland workers’ comp system provided both workers and employers a higher value proposition compared to most other states studied, according to WCRI.
The study also found payments per claim for lost wages, known as indemnity benefits, with more than seven days of lost time in Maryland grew rapidly at 10% in 2007. This was due mainly to gains in average duration of temporary disability and average weekly wage.
Lump-sum payments per claim also grew quickly in 2007 in both early and mature claims, according to WCRI.
Litigation expenses in Maryland were higher compared to the typical study state, likely due to the “dueling doctor” approach used in determining permanent partial disability (PPD) benefits.
Despite the most frequent use of medical-legal services among study states, the average medical-legal expense per claim in Maryland was typical compared to many other states. Also, defense attorneys were involved most often in Maryland, but the average defense attorney payment per claim was the lowest of the 15 states.
WCRI also reported it took longer for injured workers in Maryland to obtain their first indemnity payments. Despite the fastest injury reporting, the speed of payment once payer received notice of injury in Maryland was the slowest of the 15 states. (workersxzcompxzkit)
This result is likely tied to the unusual claim filing requirement that the statute places on injured workers in Maryland. Unlike many states, Maryland injured workers have to file a claim in order to receive income benefits.
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: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
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