Louisiana Comp Cost Higher Than Other Study States

A recent study by WCRI indicates that Louisiana has higher Comp medical payments per claim than many states, the report finds.   

The study cites several reasons, but among those are:  Utilization for neurological testing was 40% higher than the medial states surveyed (32 states).  The study showed that providers bill for more services at time of visit. The study goes on to cite many examples that are similar.

However, one of the major problems in LA is that the major PPOs have pulled out of the state due to litigation concerns.  I talk to clients that are still experiencing problems from bills where discounts were taken years ago, and these were legitimate PPO discounts.  Until LA gets it together regarding allowing the PPO industry back into the state, medical costs are going to remain high. 

Sometimes the bill review industry, carriers, and TPAs understimate the benefit of PPOs.  However, look no further than LA to see that significant savings can be achieved from valid PPOs.

For more information on the study see the following article on the recent study from Risk And Insurance:  http://www.riskandinsurance.com/story.jsp?storyId=256570095 

4 Responses to “Louisiana Comp Cost Higher Than Other Study States”

  1. Lisa Lashes Says:

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  2. Minnesota workers compensation attorney Says:

    That is interesting. I guess it makes sense that it costs more. Would they have more attendance if they lowered the price though?

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