New data from the Workers’ Compensation Research Institute (WCRI) noted further increases in dermatologicals in Delaware and Pennsylvania.
Dermatologicals – drugs applied directly to the skin, often for the acute treatment of pain – continue to see greater utilization in workers’ comp. While many dermatologicals are clinically and cost effective, there are certain trends that have driven up spending.
In the Delaware report, the WCRI found that in 2021, dermatological agents saw a 50% increase in average prescription payment per claim. However, average prescription payments per claim for dermatological agents later fell, resulting in lower overall prescription payments in 2022. Regardless, dermatological agents made up approximately 35% of all prescription payments in Q1 of 2023 in Delaware – the largest share of all other therapeutic groups of drugs.
In early October, Healthesystems attended a Workers Compensation Research Institute (WCRI) webinar, which provided key insights into Pennsylvania’s workers’ comp system, compared to other states. Of note, dermatological agents were the top prescription cost driver in Q1 2023, accounting for 55% of all prescription payments, with most dispensed directly by physicians.
It is no secret that dermatologicals have continued to creep up in terms of spend over the last few years. According to NCCI, from 2012-2023, the paid costs of topical analgesics per claim increased by 96%.
In a June report from the WCRI, dermatologicals agents made up 22% of total prescription payments in Q1 of 2023 – the largest share of prescription payments in the nation. Increases in payments for dermatologicals across the country were attributed to physician dispensing and higher-priced topical products.
While a significant amount of dermatological utilization is clinically and cost effective, the noted factors of physician dispensing and higher-priced topical products – such as private label topicals (PLTs) – must be monitored, as these factors are driving costs higher than necessary.
