Hochman & Plunkett CO., L.P.A.
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Workers' compensation claim costs rising due to prescriptions

Ohio employers may notice that it's costing more to care for injured workers. Workers' compensation claim costs increased in 2014, and that's partly due to rising prescription costs. While the number of prescriptions per worker decreased, the cost increased by 10 percent due to two main factors. The 10 percent increase is less than the 12.5 percent increase seen in 2013, but higher than the 6.5 percent and 5.1 percent increases in 2011 and 2012, respectively.

With product shortages and expired patents lurking in the not-too-distant future, the cost is being passed on to the patients, who are seeing double-digit percentage increases in medical expenses. There was a 9.9 percent increase in generic drugs and a 10.2 percent rise in brand name drugs, resulting in a 10 percent overall increase. In fact, generic brand usage rose nearly 6 percent, accounting for an 82 percent overall usage. This was the most significant increase since 2011 partly due to generic versions of Lidoderm and Cymbalta, two popular medications.

In 2014, the number of prescriptions per injured worker dropped 5 percent and narcotic drug usage decreased by 7.4 percent. However, compound drug usage increased by more than 3 percent, creating more of a cost burden to the workers' compensation system, since these medications come with safety risks.

It's important for injured workers to get the medications they need to treat their conditions, despite the cost increase. However, modest workers' compensation payments may not be enough to cover these increased costs and could, as a result, cause injured workers to go without crucial prescriptions. Those struggling financially with medical treatment may wish to seek legal assistance.

Source: Business Insurance, "Prescription cost per workers comp claim rose 7.3% in 2014," Stephanie Goldberg, June 23, 2015

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