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Aug
25

Mark Walls and Greg Krohm on the future of work comp

The last two speakers at IAIABC were Safety National’s Mark Walls and IAIABC Executive Director Greg Krohm.
Mark’s major concern is health reform will lead to access problems, especially with specialists such as orthopods and neurosurgeons. This may lead to delays in care for work comp patients.

Comorbid conditions are also problematic,
driven by obesity, diabetes, and other lifestyle/choice related issues. Work comp has to pay for these conditions, albeit indirectly due to longer disability and more costly medical treatment.
Medical costs are a huge problem, and quality of care is the desired goal. Mark noted there are several related factors, including the number of ‘bad docs’ in the comp system. 4% of docs in Louisiana accounted for 70%+ of medical costs; Mark also cited Alex Swedlow’s data on over-prescribing of opioids in California and physician dispensing of medications as additional evidence of the difficulty in controlling costs when physicians are more interested in making money rather than treat appropriately.
Other cost drivers include use of Actiq in workers comp, a drug that is only approved for cancer pain. Mark pointed out that the state of Washington and Texas have dramatically limited the use of Actiq in their respective states, and called for other states to take similar action.
Greg – who will be retiring as Executive Director at the end of this year – closed the meeting. His forecast was positive and pretty cheery, as he believes disability will be reduced, frequency will continue to decline, and workers will get good care quickly and their wages replaced in full and rapidly.
Greg’s been a very effective leader, and his replacement will be filling mighty big shoes.


Joe Paduda is the principal of Health Strategy Associates

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A national consulting firm specializing in managed care for workers’ compensation, group health and auto, and health care cost containment. We serve insurers, employers and health care providers.

 

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