Expect Major Workers’ Comp Savings Starting April 1

As you know, North Carolina employers pay unpredictably high rates for workers’ compensation medical services, without any predictability for determining the rates. Recognizing this is a major cost factor for you, the NC Chamber has been leading with the business community, insurers, hospitals and doctors to negotiate a more predictable fee schedule for employers. We have been a strong voice for the business community in the more than two-year effort to bring about needed changes in the current workers compensation medical fee schedule.

The outcome is a transition to a Medicare fee schedule over three years where employers pay a specified percentage above Medicare rates, which ultimately saves employers an estimated $400 million in workers’ compensation costs. This creates greater predictability by developed a defined cost for each medical procedure.

The Rules Review Commission took up the Industrial Commission rules last week. With no appeals filed, the new rules go into effect April 1 for hospital claims and July 1 for physician.

The rules are supported by the major organizations representing medical providers, employers and employees. The rules strike an appropriate balance to ensure that injured workers are provided an appropriate standard of services and care, that health care providers receive a reasonable reimbursement for services, and that medical costs are adequately contained for employers.

Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber

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