Fee Schedule Revision Gives Medical Providers a 3 Percent Increase

Now we can all sleep soundly at night… The OHIO fee schedule setting reimbursement rates for the more than 64,000 certified medical providers was updated (October 25, 2010) for professional provider and medical services according to the Board of Directors for the Ohio Bureau of Workers Compensation (BWC). The new schedule is projected to increase reimbursement to providers serving Ohio’s injured workers by nearly 3%.

New codes used to identify medical services and procedures will make certain injured workers receive appropriate care; ease the reimbursement process; and bring more clarity to the benefits covered under BWC’s plan.

The total investment portfolio of the BWC experienced a significant gain over the past fiscal year.

A report for fiscal year 2010, presented by Chief Investment Officer Bruce Dunn to the BWC Board of Directors, showed an unaudited portfolio net return of 12%, less management fees. BWC’s investment portfolio is passively invested in bonds and equities and includes the large State Insurance Fund, which funds medical and indemnity claims for Ohio injured workers. The total portfolio return was achieved through a 13% net return for bonds and 12.3% net return for equities over the period. (WCxKit)

“These impressive gains are a direct result of careful research and analysis by our professional investment staff and consultants,” said BWC Administrator Marsha Ryan. “They are employing best practices and working closely with the Board to make thoughtful investments that are producing profits at a time when similar funds are struggling.”

The solid returns follow several actions taken by the Board’s Investment Committee over the last two years, which are intended to maintain a strong portfolio.

These actions included implementation of a strategy to diversify fixed and equity investments within the State Insurance Fund; a comprehensive update to the Fund’s investment policy statement; and selection of passive-investment managers to execute BWC’s new investment strategy.

Also on the agenda, the Board was given an update on the implementation of recommendations within the comprehensive study of Ohio’s workers comp system, ordered by the 127th General Assembly in House Bill 100. The 900-page study includes 146 recommendations which are being analyzed and implemented.

In FY10, 59 recommendations were addressed with 46 implemented. BWC’s internal team reached 84% of its implementation goal for the fiscal year.

“The comprehensive study continues to serve as a valuable tool, providing direction toward the fundamental improvements that were necessary for BWC’s long-term strength,” added Ryan. “Each recommendation we put into action increases the quality of our operations and our service to Ohio businesses and injured workers.”

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