Results of California's WC reforms
OK, I know a lot of readers are not exactly holding their collective breath waiting for more updates from the WCRI conference...but a few are. (hard to believe, I know...)
So, for those eagerly waiting, here's the latest.
A panel discussed the results of the reforms to the California WC system. Overall, the results have been quite favorable wiith rates declining, and better control over medical care and costs.
The panel included a chiropractor, workers advocates, insurers, industry research experts and managed care firms/networks.
Preliminary results were presented looking at claims w 12 month maturity, experience thru March 2005. This does not capture the impact of the MPNs, the provider networks that were not implemented until recently. The cost per claim has declined significantly since reforms, with credit given by several of the panelists to the change in presumption and implementation of the Physical Medicine limits (the “24 visit rule”). According to WCRI’s analysis, most of the savings are due to medical cost per claim reduction; overall the preliminary numbers have medical cost per claim declining over 20% after FS change and PM limits.
Employers, specifically Marriott, believe strongly in the positive impact of the provider networks.