2015 Workers’ Compensation Research Institute Conference: Perverse Effects of Low Fee Schedules

In this episode of Workers Comp Matters, Alan Pierce and Dr. Rebecca Yang discuss low and high fee schedules, how workers’ compensation fee schedule rates compare with Medicare and group health reimbursement rates, and why lower rates do not necessarily result in lower overall costs. Yang explains how lack of access to care, indemnity benefits, and litigation can lead to higher workers’ compensation costs when fee schedules are set too low. Additionally, in some jurisdictions, medical providers have recovered costs through physician dispensing, changing treatment or billing behavior, and denying care to workers’ comp patients. However, Yang says, if the fee schedule level is too high, there is a problem of medical cost containment. Tune in to hear more about the importance of carefully balancing fee schedule rates for workers’ compensation.

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