Pharmaceuticals, DME Fastest-Growing Component of Medical Costs

A 19.4% increase in costs for prescription drugs and durable medical equipment in 2012 drove an overall 2.3% increase in average medical benefit payments per indemnity claims, the California Workers' Compensation Institute reports. Carriers paid an average of $16,375 in medical benefits per indemnity claim at the 24-month period for accidents occurring in 2012, compared to $16,003 on claims for injuries occurring in 2011, CWCI said in a research report published Thursday. The higher costs on 2012 claims come despite the fact that the amount paid for medical treatment actually dropped sli...