Adding a Pharmacy Benefit Management (PBM) program component to an employer's cost reduction program is a necessity. Drug costs are the fastest growing component of medical care and often one of the most neglected areas of workers compensation cost control.

There are numerous pharmacy benefit managers (PBM) in the workers compensation arena that insurers, self-insureds, and third party administrators (TPA) can work with. Other areas of medical cost control like fee bill schedules, medical provider networks, medical management, and utilization review get more attention than PBM, but proper utilization of PBM can result in substantial savings.

Many risk managers think of PBM only as a way of saving money by getting a discount on the cost of prescriptions. However, if the insurer (or the self-insured employer who is paying attention to the factors in the cost of their workers compensation coverage) shops around they can locate a PBM focusing on utilization control. Look for utilization management and cost management components.

Remember: There is NO co-pay for workers compensation medications.

Being in the insurance or risk management field we often forget that that injured workers do not know nearly as much as we know about claims.

Several Carriers now have a complete, customizable system to make getting the claim to the TPA easier on you the employer. Read on.

Adjusters should not look at it as the worker looking for an early exit out of the workforce. Instead look at it as a way of resolving the claim, so all parties can move forward.

The #1 selling cost containment book for workers compensation is our 2012 Workers Compensation Management Program: Reduce Costs 20-50% manual. This 181-page guidebook helps assess company or clients' workers comp programs, design program materials, roll out a program to the organization, and monitor and manage the program once implemented.  

For 20 years, the National Workers' Compensation and Disability Conference & Expo has been the industry's leading training event. And this year's event is taking it to the next level - making it the best ever! November 7-9th 2012.