Opioid Epidemic Plagues Workers’ Comp
An incredible threat to workers' compensation profitability that PEO's are in the best position to solve... Understanding real time what is happening within the underlying claims file is the next frontier of data mining.
Read the full article here: https://www.insurancejournal.com/news/national/2013/05/17/292528.htm
"Opioids make up to 3 percent of costs in shorter claims and between 15 and 20 percent of all medical costs on longer term claims, according to Dongchun Wang, an economist with WCRI, part of a team of researchers that analyzed long-term opioid use in 21 states." "Travelers estimates medical costs currently make up 60 percent of workers’ comp claim costs and are projected to increase to 67 percent by 2019. Willis’ has expanded its medical cost consulting service based on its similar estimation that by 2020, medical costs will account for 70 percent of workers’ comp costs."
“Morphine has a one‑to‑one relationship – morphine is equivalent to morphine. OxyContin is one-and-a-half times more potent than morphine. Methadone, depending on the dosage, is 10 to 12 times more potent. Fentanyl can be anywhere from 10 to 12 times more potent than morphine,” according to Mark Pew, senior vice president of business development for PRIUM. "really scary --- "
Worst States WCRI’s research found that the highest utilization of opioids on a long-term basis was in Louisiana and New York. The report also noted that despite limitations on dispensing opioids to injured workers, between 55 to 85 percent have received an opioid prescription in those states." "California has seen a large increase in opioid prescriptions over the last decade, according to CWCI, which has been tracking opioid usage in workers’ comp for the past eight years. Between 2002 and 2011 CWCI tracked a 300 percent increase in opioids, according to CWCI President Alex Swedlow. "
Those that understand when and why these drugs are prescribed will win the game. It is also noted that almost a third of opiate claimant either give away or sell their drugs. Management of this is paramount. - PH
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