Today’s issue of WorkCompRecap features the Minnesota DLI’s announcement of recently approved legislation aimed at cutting workers’ comp inpatient hospital costs by 10-15% and slowing future medical cost increases.
Starting in January 2016, the state’s workers’ comp system will be required to use the same payment system Medicare uses to reimburse hospitals, which is based on on a patient’s diagnosis using Medicare Severity – Diagnosis-Related Groups (MS-DRGs), rather than billed charges. The new legislation also authorizes the Department of Labor and Industry to adopt rules to take effect in 2017 creating a similar system for outpatient hospital and ambulatory surgical center services. The DLI has also provided a line by line breakdown of the new legislation.
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