Comp not affected by modest federal Medicare and Medicaid increases: report

Modest increases in federal Medicare and Medicaid Services reimbursement rules and rates “continue to not be a source for significant upward pressure” on workers compensation medical costs, according to an analysis released Thursday by the National Council on Compensation Insurance.

Many state medical fee schedules for treatment and care of injured workers are based on CMS reimbursements, which in 2025 showed increases for several services, including adjustments to facility and physician costs, many of which were “in line” with recent years, according to the report.

For workers comp insurers and employers, many in states where medical fee schedules are based on CMS numbers, the changes have had little effect on comp costs, NCCI found.