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Study Finds Workers’ Comp Prescription Caps Limit Costs, Not Care in California

By Kenton Koszdin Law Office on July 25, 2012 | In Law & Information

Study Finds Workers’ Comp Prescription Caps Limit Costs, Not Care in California

A recent study from the Workers’ Compensation Research Institute found that California’s law limiting the amount doctors can charge for medications they give to patients on workers’ compensation has reduced the costs of medical care for patients and for workers’ compensation insurers. However, it has not reduced the health care provided to Californians injured on the job, according to a recent article in the Business Insurance Journal.

Before the California law went into effect in 2007, California workers’ compensation patients received 55 percent of their prescriptions directly from the doctor’s office instead of from a pharmacy, according to the study. At that time, the workers’ compensation insurance program paid doctors more in reimbursement for medications for injured workers than it paid pharmacies, in many cases. For instance, a pharmacy might receive $0.43 per pill from workers’ compensation, while a doctor’s office might receive $0.85 per pill for the same medication.

Since the law limiting payments to doctors’ offices went into effect, however, 53 percent of injured workers still receive prescriptions directly from their doctors – only now, the compensation doctors receive from the workers’ compensation program is more in line with what pharmacies receive. For instance, doctors who received $0.85 per pill for certain medications before 2007 may now receive only $0.52 per pill, much closer to the compensation given to pharmacies.

Workers’ compensation in California provides needed benefits to workers who are injured on the job and to their families. If you’ve been injured at work and need help, the dedicated workers’ compensation attorneys in Los Angeles County at the Kenton Koszdin Law Office are here to assist you. Call us today at (800) 438-7734 for a free consultation.

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