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THE LOSSES ARE MOUNTING
Workers’ compensation payers have known for years that they are losing a lot of money in wasted medical payments. Studies by the states of California and Texas document medical overpayments by workers' compensation insurers from 14% to 21.9%.
The 2007 California study, conducted by Navigant Consulting, found the highest rates of overpayment with 21.9% of payments made in error. This represents a loss to the entire California workers’ compensation system of between $494 and $1.372 billion.
In Texas, the Comptroller of Public Accounts for workers’ compensation for Texas state employees does periodic reviews. The results from the studies published in 2003 and 2005 showed an overpayment error rate of 19.9% in 2003 and 13.7% in the 2005 study.
Our speakers conducted an internal study of their own workers’ compensation program. After auditing 300 medical bills over a period of six months, they found that 25% should not have been paid.
Read the full article on controlling medical cost leakage.
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