States without payroll schemes for professional services paid significantly higher prices than states with payroll schemes, according to a report released on Tuesday by the Workers Compensation Research Institute.
In its latest medical price index for worker compensation, Cambridge, Massachusetts-based WCRI revealed that prices paid for similar professional services varied significantly between the 36 studies, from 29% below the median in Florida to 167% above the median in Wisconsin in 2020.
Researchers analyzed the costs of services including evaluation and management, physical medicine, surgery, major and minor radiology, neurological tests, pain relief injections, and emergency care billed by physicians from 2008 to 2020 in the studies.
While prices grew in states with fee schedules with a median of 9% during these 1
Researchers also found that eight study states – Arizona, Illinois, Kentucky, Massachusetts, New York, North Carolina, Texas and Virginia – experienced significant changes in the total prices paid after a major change in the fee schedule during their studies.
The other states participating in the study include Alabama, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Oklahoma, Oregon, Pennsylvania, South Carolina and Tennessee.