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Are Your Workers' Compensation
Costs 'on Drugs'?

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You're aware of on-the-job injuries, but have you overlooked drug costs as a major problem? For many years, the National Council of Compensation Insurance (NCCI) has studied workers' compensation cost drivers. According to its latest study, prescription drugs now make up 19% of all workers' compensation medical costs. Here are the key findings:

  • The prescription share of total medical costs was 19%, which was slightly higher than the estimate given in NCCI's 2010 update.
  • OxyContin® climbed from the number three workers' compensation drug in 2008 to number one in 2009.
  • Hydrocodone-acetaminophen dropped from the top workers' compensation drug in 2008 to number three in 2009.
  • Overall cost increases were driven more by increases in drug usage than by price increases.
  • Physician dispensing continued to increase in 2009 in almost every state.
  • Increased physician dispensing was associated with increased drug costs per claim.
  • Per-claim prescription costs varied significantly by state.

The complete study can be found at https://www.ncci.com/documents/2011_ncci_research_rxdrug_study.pdf.

©2013 Selective Ins. Group, Inc. (Branchville, NJ). "Selective" insurers include Selective Ins. Co. of America, Selective Ins. Co. of New England, Selective Ins. Co. of N.Y., Selective Ins. Co. of South Carolina, Selective Ins. Co. of the Southeast, Selective Way Ins. Co., Selective Cas. Ins. Co, Selective Fire and Cas. Ins. Co and Selective Auto Ins. Co. of N.J. Insurers and products available vary by jurisdiction.