How important is claimant age for late-term medical expenses and do employers and employees have the latest data?
Recent NCCI research found that for workers compensation medical payments made between 20 and 30 years after an injury, the average annual payments for claimants younger than age 60 at the time of treatment are greater than the average annual payments for claimants older than age 60.
This study examines this difference by looking at the claims characteristics for injured workers in these age groups:
• Number of medical services and overall average prices paid for medical services
• Injury mix
• Prescription drug use
For this study, late-term medical care consists of all medical services provided during 2011 and 2012, for claims that occurred 20 to 30 years ago.
Key Findings from Research
Among the key findings discovered by officials from the research:
• The average annual late-term medical cost per claim generally decreases gradually with increasing claimant age.
• The number of services per claim is a larger contributor to age-related annual late-term medical cost differences than is cost per service.
• Average annual late-term medical costs per claim are about 60% higher for claimants born after 1950 than for older claimants. About 80% of this difference is explained by:
o The mix of injuries being treated and, in particular, differences in the share of quadriplegic and paraplegic claims. This explains approximately 60% of the difference.
o Use of prescription drugs and, in particular, differences in the use of narcotics. This explains approximately 20% of the difference.
View the full report at: https://www.ncci.com/documents/Impact-Claimant-Age-Late-Term-Med-Costs.pdf
Author Michael Stack, Principal of Amaxx Risk Solutions, Inc. He is an expert in employer communication systems and helps employers reduce their workers comp costs by 20% to 50%. He resides in the Boston area and works as a Qualified Loss Management Program provider working with high experience modification factor companies in the Massachusetts State Risk Pool. As the senior editor of Amaxx’s publishing division, Michael is on the cutting edge of innovation and thought leadership in workers compensation cost containment. http://reduceyourworkerscomp.com/about/. Contact: mstack@reduceyourworkerscomp.com.
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