ARTICLE

What is a WCRI?

The saying goes, “you can’t manage what you can’t measure.” This is very true in the world of workers compensation. Identifying frequency and severity patterns by detailed claim characteristics is crucial in finding ways to affect safety and claim costs. Understanding the regulatory environment in each jurisdiction is crucial to proper claim management. Industry information also helps us to find the general trends in the industry and measure individual programs against them.

The WCRI or Workers Compensation Research Institute is an independent, not-for-profit research organization that helps collect and analyze information about the workers compensation system. Their ability to collect data and scientifically look for trends can provide valuable insights.

Broadspire’s clients benefit from WCRI’s objective analysis. This past year our Analytics department took part in the WCRI national conference and other meetings. At these meetings, the group’s research, findings and legislative initiatives were presented. Here is a summation of some of their most recent research.

Factors Influencing Return to Work for Injured Workers: Lessons from Pennsylvania and Wisconsin

WCRI interviewed more than 75 experts in the Pennsylvania and Wisconsin workers compensation systems to gain ideas about Return-to-Work. They talked to employers, insurers, labor representatives, attorneys, medical providers and state government officials to ask about what opportunities and barriers they see in their organization.

The research identified the features of the Pennsylvania and Wisconsin systems that promoted timely, safe and sustainable return to productivity including:

• Wisconsin has clear and concise standards and processes for stopping disability benefits. When these are communicated to employees and their physicians, they move more timely toward a return to the workplace. Pennsylvania’s “agreement” approach, however, creates financial incentives to go back to a job, but delays the process when disputes arise.
• Statutory standards in both states were also successful in encouraging employers to find transitional duty work during recovery that reduces indemnity costs and the likelihood of longer absences.
• Public policy effecting transitions from total disability to partial disability also affected the percentage of those staying out of work on a long-term basis.

Factors Influencing Return to Work for Injured Workers: Lessons from Pennsylvania and Wisconsin. Sharon E. Belton. November 2011. WC-11-39.

Strengthening Public Policies to Manage Prescription Costs and Use

At the WCRI national conference, the institute presented this study on why Washington State has the lowest cost of pharmaceuticals in the United States. Some of their key statistics included:

• The keys to the state’s approach included their formulary, their low fee schedule and their high use of generics.
• Washington drug costs are 40% lower than the median of all other WCRI states due to strong policies, use of generic medications, infrequent physician dispensing and lower fee schedules.
• There is unusually high use of narcotics in MA, PA, LA and NY with longer-term use common in LA and NY due to low monitoring.
• 16 states lack a generic drug mandate.
• States without fee schedules had higher prices paid and faster price growth.

Cognitive-Behavioral Rehabilitation of Low Back Pain

Also at the WCRI national conference, Dr. James Rainville of New England Baptist Hospital presented a paper on Cognitive Behavioral Therapy (CBT). Broadspire recently added a number of top CBT providers to the BOLD® Network and this research supported our findings.

• Over a ten year period of time (1997 – 2006), there has been a 48% increase in the number of people treated for spine problems.
• Spine degeneration results from inadequate cell function, not from injury.
• Heredity is a predictor of disc degeneration in 75% of cases. Occupation is only a predictor in 1% of cases.
• Although degeneration can not be prevented, pain threshold is trainable. Cognitive/emotional factors lower the threshold to painful stimuli.
• Staying physically active/stretching/exercising strengthens the back and helps improve Return-to-Work.
• Intensive spine rehabilitation improves pain and disability.

Broadspire’s analytics, strategic outcomes, and medical services departments provide clients with our book of business statistics and work in collaboration with the clients on analyzing and enhancing their individual program results. We use information from organizations such as WCRI, the National Council on Compensation Insurance (NCCI) and government organizations such as the U.S. Bureau of Labor Statistics for national data that can inform our client’s programs. Together, these sources can be an invaluable resource to Risk Managers in identifying areas for improvements and ways to continue to control costs.