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October 7, 2024

Pennsylvania Workers’ Comp Trends

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On October 2nd, Healthesystems attended a Workers Compensation Research Institute (WCRI) webinar, which provided key insights into Pennsylvania’s workers’ comp system, compared to other states.

Using data from WCRI’s benchmarks and drug trend studies, the presentation covered major topics such as cost drivers, medical payment trends, indemnity benefits, and prescription drug costs.

Total claim costs rose by 4% from 2022-2023, following slight declines from 2019-2021. Medical payments per claim decreased by 2-3% annually since 2019, with minimal change from 2022-2023. Increased costs for physical therapy, supplies, equipment, and major radiology offset decreases in certain services.

However, prescription payments per claim have surged since 2018, following decreases post-2014 reforms under House Bill 1846. In 2023, the average prescription payment was $2,262 per claim, with the highest payment per prescription at $300. Dermatological agents were the top prescription cost driver in Q1 2023, accounting for 55% of all prescription payments, with most dispensed directly by physicians.

The webinar concluded with a Q&A session. The WCRI acknowledged that they will look at tracking medical payments in light of court decisions (e.g., P. Williams vs. City of Philadelphia). Additionally, WCRI noted the frequency of prescription claims, especially in states with higher levels of physician dispensing, and whether there’s a correlation to overall prescription trends.

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