There is some good news when it comes to the workers compensation system in Minnesota.
Legislation approved recently and signed by Governor Mark Dayton will cut workers comp inpatient hospital costs by 10 to 15 percent and slow future medical cost increases.
Minnesota's workers comp system will be required by the legislation to use the same payment system Medicare uses to reimburse hospitals beginning in January 2016. The system bases a hospital's reimbursement on a patient's diagnosis using Medicare Severity — Diagnosis-Related Groups (MS-DRGs). This replaces the current system in which reimbursement is based on charges billed for treating a patient.
The legislation enhances electronic billing, reduces information hospitals must submit with bills and reduces payment disputes. It also ensures injured workers are granted the right to have disability benefit payments electronically deposited in their own accounts.
Rules Set Up for 2017
The legislation authorizes the Department of Labor and Industry to adopt rules to take effect in 2017, setting up a similar system to pay outpatient hospital and ambulatory surgical center services provided to injured workers. The department will continue to work with all interested parties in developing the rules.
The bill is the result of eight months of complex negotiations involving hospitals, insurers, organized labor and employers.
"This is the most significant workers compensation cost control measure in two decades," said Ken Peterson, commissioner, Department of Labor and Industry. "Proper care will continue to be provided to injured workers, while costs will be driven down and the system made more efficient."
Before being submitted to the Legislature, all workers comp bills must be approved by the Workers Compensation Advisory Council; composed equally of labor and management representatives.
The council approved this measure in April 2015.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: kstack@reduceyourworkerscomp.com.
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