Today’s issue of WorkCompRecap features the release of a new technical paper from NCCI that examines the issue of medical inflation, can have a significant effect on rates/premiums, profits, and benefit levels in workers’ comp.
It its paper, NCCI explores the differences between the commonly used Medical Price Index (MPI) alternatives, and encourages the industry to consider using a recently developed methodology called the Personal Health Care Index (PHC). The composition of the index is a set of medical services that more closely mirror those typically seen in workers comp, creating a more similar “basket of goods”. The index can also be “chain-weighted”, which means it can approximate YoY changes that reflect an evolving mix of services, especially as utilization of medical and prescription services change.
Find out more (including a link to the free paper and video!) by clicking here!