Dated but revealing information from the Texas Department of Insurance indicates that the average medical cost per claim dropped 4% from 2019 to 2023.

Joe Paduda

Medical costs decreased at a higher rate than the drop in work comp claims, although one should be careful in reading too much into that, as employers can enter and exit the work comp market almost at will.

Per claim:

• Facility costs dropped 2%.
• Pharmacy was down 7%.
• Professional services decreased 7%.

The percentage of lost time claims receiving physical medicine dropped slightly, offset by an increase in PM services for med-onlies. 

Great news on the opioid front: Usage declined dramatically.

Lest one become sanguine, it is clear that the profit-seekers are still working their nefarious ways to hoover dollars out of employers' and taxpayers’ pockets. Compound drug costs exploded over the study period.

What does this mean for you?

Medical costs did not increase.

Thieves still target workers’ comp.

Kudos to TDI’s Vivian Meng, Botao Shi, Dr. Hari Luintel and Conrado Garza for their excellent work.

Joseph Paduda is the principal of Health Strategy Associates, a consulting firm focused on improving medical management programs in workers’ compensation. This column is republished with his permission from his Managed Care Matters blog.