Indiana Work Comp Reforms Signed by Gov. Pence


Indianapolis, IN ( - Saturday, May 11, Indiana Governor Mike Pence signed important workers compensation reform legislation (HB 1320) that will help address spiraling medical costs, according to the Property Casualty Insurers Association of America (PCI).

The new law will put into place a workers compensation hospital fee schedule at 200 percent of Medicare, plus it will limit pricing for repackaged drugs to the wholesale rate. 

“Stronger cost containment is much needed in the state's workers compensation system and this legislation, while still very generous to hospitals, is an important step in the right direction,” said Ann Weber, vice president, state government relations for PCI. “The Medicare fee schedule should provide stability and predictability to the workers compensation system. This legislation will begin to put Indiana in alignment with other states by adopting a workers compensation hospital reimbursement schedule based on Medicare rates. In addition, lawmakers identified a significant workers compensation cost driver, physician dispensing of repackaged drugs, which injects cost in the system without any discernible benefits to injured workers. The new law provides that the maximum price for a repackaged drug cannot be higher than the average wholesale price set by the original manufacturer. We applaud Gov. Pence and the Legislature for enacting this legislation which will provide toward stronger medical cost containment in the state's workers' compensation system.”

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $190 billion in annual premium, 40 percent of the nation's property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 38 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

Source: PCI Press Release

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