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A Primer for the Physician Executive
By Dr. David Edward Marcinko MBA
[Publisher-in-Chief]
Workers’ Compensation is reported to be the largest line of commercial insurance, possibly because it is also a statutory obligation for employers, like doctors, who have common law employees. Workers’ Compensation provides coverage for lost income due to on-the-job accidents or work-related disability or death, and benefits vary by state. Its purpose is not only to provide these benefits but also to reduce potential litigation. Employees accepting the benefit payments from a Workers’ Compensation claim generally forego the right to sue their employer. Workers’ Compensation rates are established by job descriptions and commercial rates for the medical professional’s office are some of the lowest available.
The Methods
There are three methods of providing Workers’ Compensation coverage:
1. Private commercial insurance
2. Governmental insurance funds
3. Self-insure
The medical professional may be inclined to the third method, especially in the larger offices. Since the weekly benefits are typically below $500, this would seem to make a lot of sense. But, as in larger groups, the officers and owners can elect not to be covered – it is usually more convenient for the medical professional to cover this risk with personal disability income insurance.
The Monopolistic States
There are, however, seven “monopolistic” states – Nevada, North Dakota, Ohio, Washington, West Virginia, and Wyoming – which do not permit private commercial insurance.
Assessment
Larger offices or companies, which wish to take more direct control of costs and benefit management, should consider self-insuring only after receiving expert advice. This is one form of coverage that truly requires a trusted, knowledgeable insurance advisor.
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Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:
- PRACTICES: www.BusinessofMedicalPractice.com
- HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
- CLINICS: http://www.crcpress.com/product/isbn/9781439879900
- ADVISORS: www.CertifiedMedicalPlanner.org
- FINANCE: Financial Planning for Physicians and Advisors
- INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
- Dictionary of Health Economics and Finance
- Dictionary of Health Information Technology and Security
- Dictionary of Health Insurance and Managed Care
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Filed under: Insurance Matters, Practice Management | Tagged: david marcinko, Workers’ Compensation |
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ProPublica Investigates Workers’ Compensation
[Coming Soon]
For nearly a century, American workers and their employers had a compact: A guarantee that after a workplace accident, employers would pay the injured workers’ medical bills and enough of their wages to help during recovery.
http://www.propublica.org/article/coming-soon-propublica-investigates-workers-compensation?utm_source=et&utm_medium=email&utm_campaign=dailynewsletter&utm_content=&utm_name=
That compact is fracturing.
Raymond
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Workers’ Compensation Drug Trends
Here are some key findings from the 2014 Express Scripts Workers’ Compensation Drug Trend Report:
• Workers’ compensation pharmacy spending increased 1.9% in 2014.
• A 5.4% decrease in overall utilization helped offset a 7% increase in the cost per prescription.
• Utilization management programs drove down injured workers’ opioid utilization nearly 11%.
• This decrease in utilization balanced an 11.5% increase in the average cost per prescription.
• Total spending on workers’ compensation opioids remained flat at a per-user-per-year cost of $487.59.
• The average cost of compounds per workers’ compensation prescription in 2014 was $1,696.99.
Source: Express Scripts, April 21, 2015
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