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Analysis of California WC Reforms Part 4: Changes in Medical Payments, AY 2002 to 2007 Claims Experience

A new CWCI study shows significant increases in California workers’ comp medical payments since AY 2005, with amounts paid for treatment, pharmaceuticals and durable medical equipment, med-legal reports, and medical management all on the rise.

Calif. WC Reform Monitoring Series, Part 3: TD Outcomes AY 2002-07

Updated data on temporary disability claim outcomes under SB 899 finds that while the average TD paid on lost-time claims in California at 12 and 24 months remain less than pre-reform levels, average TD payouts for recent injury claims have increased and are nearing pre-SB 899 levels.

Medical Provider Networks and Medical Benefit Delivery AY 2002 – 2007 Experience

The latest CWCI Research Update on post-reform medical outcomes shows an ongoing shift toward the use of medical networks for the treatment of injured workers in California. The full report is in the Research section.

Post-Reform Changes in Inpatient Hospital Use and Back Surgery

A new CWCI study shows a sharp drop in the number of inpatient hospitalizations for California job injuries, including work-related back injuries, between 2002 and 2006, coinciding with the implementation of workers’ comp reforms and reductions in the number of reported work injuries.

Changes in Medical Cost Containment Payments AY 2002-2007

The first report in the CWCI’s latest 4-part research series on California workers’ comp reform outcomes finds that the average amount paid for medical cost containment (e.g. medical bill review, medical case management, UR and network fees) continue to increase, though preliminary data from accident years 2006 and 2007 show overall medical payments per claim, which declined sharply from 2002 to 2005, were up in AY 2006 and 2007. The full report on the study is posted in the Research section of the website, and CWCI members and subscribers may download a summary bulletin on the report from the Member section.

Pain Management and the Use of Opioids in the Treatment of Back Conditions in the California Workers’ Compensation System

The study analyzed more than 166,000 California work injury claims for back conditions with no spinal cord involvement and found an association between higher levels of opioid use with higher costs and a higher prevalence of other adverse outcomes such as increased likelihood of lost time from work, delayed recovery and more litigation. The study adds to scientific literature that suggests that at higher levels of use, opioids can have an adverse impact on both activity levels and on self-efficacy, and that prolonged administration of pain medication may impede rather than facilitate injured workers’ recovery from occupational back injuries.

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