Despite attempts by lawmakers to put into place rules to reduce drug cost and medical expenses, the cost of drugs within the workers' compensation industry continues to rise nationwide. It appears that ultimately there are few laws that can reverse the trend of more expensive drugs used by more workers' compensation patients.
For example: Several states have attempted to address the problem of physician-dispensed drugs, which cost far more in overhead expense than pharmacy-dispensed drugs. Most drugs dispensed to workers' compensation patients are of the highly addictive pain-related medication type (oxycodone, OxyContin), which are extremely expensive. The result: Increased costs that insurers pay out, which increases the costs of claims and eventually increases premiums paid by employers to insurers.
States Try to Tackle the Problem
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 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.