Insight, analysis & opinion from Joe Paduda
I don’t have any statistics or studies to back this up, but after conversations with several large and medium workers comp payers it is apparent facility costs are on the rise. And the increase looks to be higher than projections,
The reasons appear to be several.
This is the fourth year my firm has surveyed workers comp payers on prescription drug management. We’ve learned a lot every year, and 2007 is no exception.
If you want a copy of the survey report, email me at jpadudaAThealthstrategyassocDOTcom.
Meanwhile, here are a few highlights.
Continue reading What payers are saying about comp drug costs
From the big big world of national health care reform, we’re heading to the tiny niche of drugs in workers comp, where some pretty interesting things are happening.
Well, interesting to the six or eight people who are remotely interested in WC drug management.
A few Coventry workers comp folks were not happy with my characterization of their customer service as less than optimal. They all noted that their customers seem happy and appreciate the high level of service at Coventry.
I don’t doubt that some customers are pleased; I also know that some are not.
I checked the stock price yesterday; CorVel dropped a bit more, and is now below $26, but still enjoying a PE of 19+. That’s down from the 38 PE from last fall, but still a bit of a premium compared to the broader market.
Why?
OK, here’s a post for the workers comp folks, laden with industry acronyms and inside scoop.
I’m at the AmComp annual meeting; its in Chicago this year, ably hosted by Aon. There was a particularly interesting session yesterday on underwriting in a soft workers comp market, moderated by Kathy Muedder of Selective. Rob Purdy of AIG’s American Home, Karl Amidon of Aon’s reinsurance group, and Bob McFadden of Munich Re America were on the panel. Here’s the report.
My post on the efforts by WCPA and others to roll back parts of the NY workers comp reforms has generated a lot of criticism by individuals who appear to consider themselves advocates for the injured worker.
My motives, intelligence, experience, and perspective have all been questioned, with varying degrees of civility. The personal assaults are not helpful nor are they constructive.
The efforts by third party billers and their partners to overturn a key part of the NY workers comp reform package appear to be gathering strength. Two legislators have introduced a bill that would kill the ability of payers to direct injured workers to specific pharmacies.
The rationale, that the pharmacies would somehow deny scripts, is ludicrous.
If you want to know why you are getting more physician bills with meds on them, it’s simple – physician dispensing generates big profits.
The comp managed care marketplace has been changing rapidly, and no company has been more affected than CorVel. It looks like the company has decided to switch rather than fight.
Why?