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NCCI Finds Signs of Slowing Workers' Comp Drug Costs

The National Council on Compensation Insurance has released its latest workers' compensation prescription drug study that shows the increase in drug costs is accelerating at a slower rate than

By Michael H. Adams | Updated on November 30, 2006

The National Council on Compensation Insurance has released its latest workers’ compensation prescription drug study that shows the increase in drug costs is accelerating at a slower rate than previous years. According to the study, the cost of prescription drugs for workers’ comp and group health plans alike, increased by 8.2 percent in calendar-year 2004 as opposed to the 10.2 percent increase registered in 2003 and 14 percent in 2002. Even with the slight reduction in cost trends, however, the council found that the drug portion of the workers’ comp total medical dollar continued to increase, reaching 13.4 percent in 2003.

The Centers for Medicare and Medicaid Services cited several factors associated with the decline in drug cost trends. First the center cited the emphasis on using lower-priced generic drugs and over-the-counter drugs, such as antihistamines and antacids. Also noted was the shift toward using mail-order drugs and a reduced use of certain drugs based on concerns over their safety. Those drugs include Celebrex, Vioxx, and Bextra, which were formally some of the most prescribed drugs in the workers’ compensation system.

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