Just How Financially Healthy is Your Small Business, Anyway?
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Monday, June 15, 2009
Thursday, June 11, 2009
Tuesday, June 9, 2009
Wednesday, June 3, 2009
Thursday, May 28, 2009
Workers' compensation pharmacy spending increased by 5.4 percent in 2008
Risk and Insurance Online - Story
Workers' compensation pharmacy spending increased by 5.4 percent in 2008
Workers' compensation pharmacy costs continued to increase in 2008 despite consistent overall decreases in injury rates over the past several years.
PMSI, a pharmacy benefit manager and provider of specialty services for the workers' comp market, unveiled its 2009 Annual Drug Trends Report. The study examined workers' comp drug spending trends based on the company's nearly 8 million pharmacy transactions between 2006 and 2008.
According to the report, pharmacy costs now represent approximately 14 percent of the total medical spending in workers' comp. Researchers said that the continued pharmacy cost increases represent one of the largest issues facing the workers' comp world.
Among the highlights of the study, researchers found that:
· Overall spending increased. The report found that workers' comp pharmacy costs increased by 5.4 percent in 2008, compared to 3.3 percent in 2007.
· Drug price contributed to majority of spending increase. Researchers said the price of drugs contributed 4.2 percent to the total spending increase, compared to 3.1 percent in 2007. The 2008 increase, the study found, was due primarily to average wholesale price increases and the reduced availability of generic versions of drugs such as OxyContin.
· The top five most prescribed drug classes remained unchanged from 2007. Narcotic analgesics, anticonvulsants, non-steroidal anti-inflammatory drugs, skeletal muscle relaxants, and antidepressants represented 70 percent of total pharmacy costs and 74 percent of total transactions in workers' comp in 2008.
· Claim age was significant factor driving pharmacy costs. Researchers said the age of a workers' comp claim continued to be a significant driver of pharmacy costs. Injuries greater than three years accounted for more than 80 percent of workers' comp pharmacy spending, the study found.
· Antidepressant use on the rise in workers' comp. Cymbalta, an antidepressant used in the treatment of chronic pain, ranked 10th in total drug costs in 2008, as opposed to 14th in 2007 and 17th in 2006. Researchers said this is the first time an antidepressant ranked in the top 10 in total drug costs and is evidence of the expanded use of antidepressants in the workers' comp setting.
"This year's report illustrates the importance of an effective pharmacy management program that is tailored to the specific nuances of the workers' compensation market," said Dr. Maria Sciame, director of clinical services at PMSI. "Given the complexity of workers' compensation claims, payors should look for opportunities to partner with an experienced PBM such as PMSI to improve network penetration, increase generic substitution, maximize mail-order utilization, and engage clinical utilization management programs. Maximizing these opportunities will lead to better cost containment and improved care for injured workers."
May 18, 2009
Copyright 2009© LRP Publications
Thursday, May 21, 2009
Tuesday, May 19, 2009
Workers' Compensation: News Headlines: Insurance News: Zurich Announces New Risk Retention Groups, Self Insurance Group and Pooling Capability
Saturday, May 9, 2009
Tuesday, May 5, 2009
Saturday, April 18, 2009
Thursday, April 9, 2009
Tuesday, April 7, 2009
Thursday, April 2, 2009
Medical Costs Continue to Rise
The ever-increasing cost of health care is overshadowing the decline in frequency of workers compensation claims.
Discuss with your risk management advisor and/or claim adjuster tactics and strategies to identify excessive medical bills and always be on the look out for FRAUD.
Discuss with your risk management advisor and/or claim adjuster tactics and strategies to identify excessive medical bills and always be on the look out for FRAUD.
Wednesday, April 1, 2009
The Hiring Process
How does your firm recruit new talent? How extensive is your screening process? Referrals? Background screenings? Records checks? Citizenship?
The effort to bring someone onto your payroll cannot be overlooked nor should it be delegated as an administrative "tick-and-flick" process.
Remember: who you hire ultimately impacts your labor costs including workers compensation loss costs.
The effort to bring someone onto your payroll cannot be overlooked nor should it be delegated as an administrative "tick-and-flick" process.
Remember: who you hire ultimately impacts your labor costs including workers compensation loss costs.
Tuesday, March 31, 2009
2008 P&C FINANCIAL RESULTS
The financial results for the P&C industry are in and they are not pretty.
The highlights:
Loss ratios continue to climb. 2008 marks the continuation of a five-year trend of deteriorating underwriting results.
Price changes (year to year) have flattened.
Investment losses cut deep.
As you plan your 2009 renewals, be aware of your carrier's financial performance. As uncertainty about our economic future continues, underwriters will focus their energy on profitable accounts and take flight or re-underwrite accounts that show poor experience.
The highlights:
Loss ratios continue to climb. 2008 marks the continuation of a five-year trend of deteriorating underwriting results.
Price changes (year to year) have flattened.
Investment losses cut deep.
As you plan your 2009 renewals, be aware of your carrier's financial performance. As uncertainty about our economic future continues, underwriters will focus their energy on profitable accounts and take flight or re-underwrite accounts that show poor experience.
Monday, March 30, 2009
Why Employers Fail to bring back injured workers?
Most small businesses do not have the benefit of a designated person or staff to coordinate a return to work program.
Experience Rating-Do You Know How It Affects Your Business?
Underwriters use past experience to offer you current terms and pricing. Do you know the ipact of the reserves the carrier sends you?
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