Back to Columns | Print Column | ||
State: Ntl. Paduda: Opioids and Work Comp Premiums: [2019-11-14] |
||
|
||
Two seemingly unrelated papers hit the inbox yesterday: the California Workers’ Compensation Institute's just-completed analysis of opioid usage in California, and the National Council on Compensation Insurance's report on 2019 workers’ comp financials. The key takeaways from NCCI’s report include:
So, even though premiums are dropping like a rock, insurer profits are better than they’ve ever been. Why? Well, declines in frequency are certainly a big contributor. Reduced worker benefits are likely a factor as well — and a big problem we’ll address in a later post. If anything, investment profits are a drag on profitability (NCCI reports 2018 investment gains averaged 9.2%). Which brings us to CWCI’s report, “The Impact of Declining Opioid Use on Lost-Time Claim Development & Outcomes in California Workers’ Compensation” (disclosure: I provided input as a peer reviewer for the final report). Key takeaways:
Later, I'll discuss the connection between opioid reductions and premium levels — and what it means for the industry and you. Joseph Paduda is co-owner of CompPharma, a consulting firm focused on improving pharmacy programs in workers’ compensation. This column is republished with his permission from his Managed Care Matters blog. |