Medical costs much higher in states without fee schedules: WCRI

Medical costs for injured workers in 2024 were 35% to 177% higher in states without workers compensation fee schedules, according to an analysis released Tuesday by the Workers Compensation Research Institute.

WCRI researchers compared prices paid in 2024 for medical services across 36 states, finding that higher inflation in the general economy affected pricing, “particularly in states that update their fee schedules based on all-price indexes, rather than on medical price indexes,” said Ramona Tanabe, WCRI’s president and CEO, in a statement.

Services analyzed include evaluation and management, physical medicine, surgery, radiology, neurological testing, pain management injections, and emergency care, finding that prices for professional services varied significantly, ranging from 33% below the 36-state median in Florida to 172% above the median in Wisconsin.

Most states without fee schedules saw faster growth in prices for professional services from 2008 to 2024, with a median growth rate of 40%, compared with 15% in states with fee schedules, WCRI found.