The Myth (and Why People Subscribe to It)
Costs associated with workers' compensation are rapidly becoming one of the largest expenditures in hospital insurance and risk financing programs. The trends, both financial and in the definition of compensability, are alarming. The concern for rising workers' compensation costs has reached all management levels in institutions, yet because of the peculiar characteristics of the workers' compensation system, many accept the myth that "workers' compensation costs are uncontrollable." Why? Reasons given include the following: W Legislatures mandate benefit lewels and rates. The political process balances many competing interests to arrive at benefits and rates. Meaningful reform will come only through systemic change-and that could take years to achieve.
Definitions of compensability are expanding. Repetitive motion injuries (such as carpal tunnel syndrome) and occupational stress claims have increased dramatically. The specter of AIDS, as well as ever-improving skills in establishing injury causation from exposure to workplace conditions, are major concerns. Whether occupationally caused or not, those and other new types of claims will continue to find their way into workers' compensation.
Employees often have first choice of prowider. In a number of states, employees, not employers, have the right to choose their own physicians, reducing the employer's ability to direct its employees to a preferred provider.
Costs are being shifted to workers' comp.
states that allow employers to direct employees to a provider network are Alabama,