The number of workers’ compensation claims filed by Louisiana state employees dropped by nearly one-third over the last eight years, but claims costs for state agencies continued to surge higher, according to an audit released today.
As The Associated Press reports, Legislative Auditor Daryl Purpera’s office reviewed claims and costs for state employees from the 2006 through 2013 budget years. The audit shows that even as the number of claims fell 30% during the period, the workers’ compensation costs grew from $44.3 million a year in 2006 to $66.2 million eight years later, a more than 49% jump.
“We found that the high cost of workers’ compensation is due, in part, to unlimited temporary total disability benefits, an increase in the amount of time workers are off the job, the use of an outdated fee schedule to reimburse medical providers, the lack of a prescription drug formulary and a costly dispute resolution process,” the audit says.
Louisiana’s rules governing workers’ compensation are looser than other states’ regulations, according to the audit. Purpera’s office recommended shrinking state agency costs for workers’ compensation by adopting policies used by private businesses and reworking the reimbursement schedule.
Jindal administration officials agree and say they have been working to put those changes in place.
Louisiana’s labor department, known as the Louisiana Workforce Commission, oversees workers’ compensation, which pays for lost time at work, medical costs and expenses related to managing and litigating claims. The audit says the cost of each of those categories grew for state government over the years it reviewed.
LWC Executive Director Curt Eysink says in a written response to the audit that his agency is working to update the fee schedule and require that outpatient costs follow it.
