Provider choice has little impact on comp claim costs: Study
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Average workers compensation indemnity and medical costs vary little between states that allow employees to choose their provider and states that give employers more control of provider choice, according to a study by the Workers Compensation Research Institute.
The average cost difference was nearly zero for medical costs, the Cambridge, Massachusetts-based institute said.
The type of injury impacted medical and indemnity costs, however. Back injuries incurred higher medical and indemnity costs in states that give workers more control over their provider choice, the study found.
“This suggests that policy changes that restrict worker choice across the board may do little to reduce costs on average,” a research note associated with the report said. “Rather, policymakers in states where policies give workers control of the choice of provider might focus on how to reduce the incidence of high-cost cases for a narrow set of injuries.”
WCRI noted that actual provider choice may not adhere to policy guidelines, which makes it difficult to establish a direct causal relationship between provider choice policies and costs.
The study examined injuries in 25 states that occurred between 2007 and 2010 evaluated at an average maturity of 36 months. States where workers can choose a provider within their employers’ established network were excluded from the study.
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