Boca Raton, FL – NCCI recently released the first of four installments in a new series on inflation and workers compensation medical costs.
In today’s ever-changing environment, there is no shortage of questions on inflation and how medical costs may be impacted. In fact, workers compensation stakeholders indicate this is one of the top-of-mind issues they’re facing.
NCCI tackles this important subject in its new Inflation and Workers Compensation Medical Costs series in four parts addressing the key components of medical cost drivers: general overall medical costs, facility services, physicians, and prescription drugs.
So, the question is: How is the current inflationary environment affecting workers compensation medical costs? In short, “it’s complicated.”
In Part 1 NCCI explores price and utilization trends in medical services, and how each contributes to workers compensation costs in the four US geographic regions. This report also provides state-specific results.
Key observations included:
- Medical inflation in WC has been moderate for the past decade. But with the recent dramatic rise in consumer prices, concerns have emerged about medical inflation rising at similar levels.
- Two factors drive changes in medical claims costs: the price of medical services and utilization, which measures the mix and number of services provided to an injured worker.
- NCCI’s most recent medical data shows that drug costs are declining, physician costs are up slightly, and facility costs are rising in the WC system.
- In recent years, facility services are the dominant contributor to changes in WC medical costs across regions—most prominently in the Southeastern region.
Read the free report: NCCI: Inflation and Workers Compensation Medical Costs — Overall Medical