While declining Workers’ Compensation rates have benefited employers in recent years, there are challenges that cloud the future. The outlook for 2008 is one of caution and concern.
Consider the following issues:
1. Rising costs and utilization of medical treatments. Alarming increases in utilization of medical services compounds the ever-present negative impact of escalating medical costs. An NCCI study concludes the key driver is not price, but growth in the number of medical treatments. What’s more, there is a move to more complex and expensive treatments. The seismic shifts in medical innovation and the corresponding increase in treatment options, coupled with consumer demand for the latest and greatest treatments, will continue to propel the spiral of increased utilization in 2008. Unchecked, the combination of these factors means soaring medical costs.
- Places:
- California