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(c) 2016 Jon L Gelman, All Rights Reserved.

Wednesday, December 11, 2013

More Cost Shifting

A recent study reports that zero-cost workers' compensation claims merely creates cost shifting to other programs.


Objective: Previous research suggests that non–workers' compensation (WC) insurance systems, such as group health insurance (GHI), Medicare, or Medicaid, at least partially cover work-related injury and illness costs. This study further examined GHI utilization and costs.
Methods: Using two-part model, we compared those outcomes immediately after injuries for which accepted WC medical claims made zero or positive medical payments.
Results: Controlling for pre-injury GHI utilization and costs and other covariates, our results indicated that post-injury GHI utilization and costs increased regardless of whether a WC medical claim was zero or positive. The increases were highest for zero-cost WC medical claims.
Conclusion: Our national estimates showed that zero-cost WC medical claims alone could cost the GHI $212 million per year.