Indiana: Fee schedule, cap on repackaged drugs in new reform law
H.B. 1320 imposes a fee schedule with a maximum reimbursement rate of 200 percent of the Medicare rate for treatments and procedures by medical service providers to injured workers. Payments for repackaged drugs will be limited to the average wholesale price set by the original manufacturer.
Insurance trade associations were hailing the measure. "Stronger cost containment is much needed in the state's workers' compensation system and this legislation, while still very generous to hospitals, is an important step in the right direction," said Ann Weber, vice president of state government relations for the Property Casualty Insurers Association of America. "The Medicare fee schedule should provide stability and predictability to the workers' compensation system. This legislation will begin to put Indiana in alignment with other states by adopting a workers' compensation hospital reimbursement schedule based on Medicare rates."
Likewise, the American Insurance Association praised the measure. "We are especially pleased that the legislation contains provisions that will help curtail the rapidly escalating costs of repackaged prescription drugs in Indiana's workers' compensation system," said Steve Schneider, Midwest region vice president for the American Insurance Association. "By imposing a fee schedule with a maximum reimbursement rate and limiting the increasing costs of non-pharmacy dispensed prescription drugs for injured workers in Indiana, H.B. 1320 is an important step forward in addressing this growing problem."
Read more at the WorkersComp Forum homepage.
June 10, 2013
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