Drugs account for over one-eighth of workers compensation medical expenses, and that number continues to increase. The data from NCCI's latest research paper on workers compensation drug costs is consistent with the findings of my firm's research, and provides additional detail on the specific drugs that account for the majority of dollars spent.

NCCI's report includes results up to 2003; while there have been several significant changes since then (the disappearance of most of the COX-2s, patent expiration on Oxycontin, and the explosive growth of Actiq), the report's year-over-year trend data is sobering.

Of note, experience indicates that the most sophisticated payers are holding increases in the 2-5% range through the use of clinical management programs, data mining, adjuster training, strong EDI connections, and intelligent third party biller strategies.

Their less-sophisticated colleagues are at the other end of the spectrum, experiencing 15% and higher annnual inflation rates.

What does this mean for you?

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