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Adopting Medicare Fee Schedules

Medical costs have become the fastest-growing component of the California workers' compensation program, increasing from 45 percent of benefit costs in the mid-1990s to an estimated 55 percent of benefit costs in 2003. In response to concerns about these rapidly increasing costs, the California Commission on Health and | Adopting Medicare Fee Schedules Considerations for the California Workers Compensation Program Barbara O. Wynn Prepared for the California Commission on Health and Safety and Workers Compensation RAND INSTITUTE FOR CIVIL JUSTICE The research presented in this report was prepared for the California Commission on Health and Safety and Workers Compensation. This research was conducted by RAND s Institute for Civil Justice. Library of Congress Cataloging-in-Publication Data Wynn Barbara O. Adopting medicare fee schedules considerations for the California workers compensation program Barbara O. Wynn. p. cm. Mr-1776. Includes bibliographical references. ISBN 0-8330-3476-6 pbk. 1. Medical fees California. 2. Medicare California. 3. Workers compensation California. DNLM 1. Fee Schedules economics California. 2. Medicare economics California. 3. Economics Hospital California. 4. Patient Care economics California. 5. Workers Compensation economics California. W 74 AC2 A239 2003 I.Title. R728.5.W96 2003 368.4 2 009794 dc22 2003016718 RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND is a registered trademark. RAND s publications do not necessarily reflect the opinions or policies of its research sponsors. Copyright 2003 RAND All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means including photocopying recording or information storage and retrieval without permission in writing from RAND. Published 2003 by RAND 1700 Main Street RO. Box 2138 Santa Monica CA 90407-2138 1200 South Hayes Street Arlington VA 22202-5050 201 North Craig Street Suite 202 Pittsburgh PA 15213-1516 RAND URL http www.rand.org To order RAND documents or to obtain additional information contact Distribution Services Telephone 310 451-7002 Fax 310 451-6915 Email order@rand.org RAND Institute for Civil Justice The mission of the RAND Institute for Civil Justice ICJ is to improve private and .