WCA Estimates the Cost of the Medical Treatment Guidelines
On Monday, January 23, 2012 the WCA released an estimate to the New York State Legislature of the cost of the Medical Treatment Guidelines. The state Workers' Compensation Board implemented the Guidelines on December 1, 2010, and has applied them both retroactively and prospectively.
The original intent of the Legislature in authorizing the Board to create a list of "pre-approved" medical treatment and surgery was to expedite medical treatment to injured workers, reducing red tape and litigation. It was expected that both injured workers and insurers would benefit not only from the reduction in litigation costs but also from speedier return to work.
In practice, the Medical Treatment Guidelines have vastly expanded red tape and litigation, slowed and limited medical treatment for injured workers, and dramatically increased costs for insurers.
The WCA analysis shows that - measured conservatively and using the Board's own data - the cost of the litigation process associated with the Medical Treatment Guidelines is twice the cost of the medical treatment the Guidelines cut off.
Instead of reducing costs and speeding medical care to injured workers, the Medical Treatment Guidelines have expanded costs and slowed treatment. In view of the evidence, the WCA has called on the Board to withdraw the Guidelines and all associated process and to reconsider how to best achieve the Legislature's intent. In the interim, the WCA has called on the Legislature to prohibit the Board from retroactive application of the Guidelines as a matter of justice and due process.
The WCA analysis can be found here.
