NU Online News Service, Oct. 17, 12:13 p.m. EDT
California workers' compensation insurers, which have been hurt by increasing underwriting losses over the past three years, should benefit from two bills signed into law recently, and from several bills opposed by the industry that were not signed, according to Moody's.
In its Weekly Credit Outlook, Moody's says AB 378, one of the two bills signed, represents the "biggest positive effect for insurers," as it establishes a fee schedule for compound drugs. "Until now," says Moody's, "the state's workers' compensation fee schedules excluded these drugs, whose usage and costs increased at a much higher rate than other pharmaceuticals…and essentially created a billing loophole."
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