Reining in the Costs: Workers’ Compensation and Prescription Drug Spending

Medical services represent the bulk of workers’ compensation claims costs — and prescription drugs are a big contributor. Frequent opioid prescriptions, physicians bypassing pharmacies to repackage and dispense medication directly to injured workers, and the use of compounded medications instead of commercially available alternatives have all contributed to rising drug costs.

Employers can attack these drug costs on multiple fronts. Among other steps, employers can:

• Manage provider behavior, including limiting or discouraging potentially costly practices.
• Incorporate data and analysis into their review of drug spending and provider activates.
• Adopt a more employee-centric model to keep the focus on the injured worker and provide them the support and information on the road to recovery.
• Select effective claims administrators and pharmacy benefit managers.

Download our new report, which was prepared by Marsh’s Workers’ Compensation Center of Excellence, with contributions from Express Scripts and Liberty Mutual Insurance.