Search
 

Drug Costs in Workers' Compensation

The good news is that drug cost inflation in workers' compensation has moderated considerably in recent years. The bad news is that this moderation is not industry-wide, but rather favors those

By Joseph Paduda | Updated on August 31, 2008

The good news is that drug cost inflation in workers’ compensation has moderated considerably in recent years. The bad news is that this moderation is not industry-wide, but rather favors those payers who have worked long and hard to rein in drug costs. The reward has been considerable: the best performers – those who focused on managing utilization – actually saw their drug costs decline over the past year.

For five consecutive years, Health Strategy Associates, LLC has conducted an annual survey of executives and senior management at workers’ compensation payers on prescription drug management. During that time, we have seen pharmacy costs grow even faster than medical expenses, and they now account for 14.5 percent of workers’ compensation medical expenses (more than $4 billion).

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2025 ALM Global, LLC. All Rights Reserved.