Workers' compensation-mental injury.

14LSO-0008.L1

                                                         

FISCAL NOTE

 

 

 

FY 2015

FY 2016

FY 2017

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Expenditure Increase:

 

 

 

INDUSTRIAL ACCIDENT FUND      (Medical Costs)

42,044

43,389

44,777

INDUSTRIAL ACCIDENT FUND (Pharmaceutical Costs)                  

303,770

313,491

323,523

 

Source of Expenditure Increase:

The proposed legislation would remove the six-month time limit for the payment of mental health related expenses for Worker's Compensation claims. The removal of the time limit would increase mental health related expenses.

 

Assumptions:

While it is not possible to definitively project the expenditure increase associated with this proposed legislation, the Department of Workforce Services makes some reasonable assumptions of the impact. The cost projections provided herein are based on the assumption that 25% of the cases would continue past the six-month time period. It is the department's experience that most mental health treatment associated with a physical injury occurs during the first six-months. A review of the Official Disability Guidelines (ODG), indicates that most common conditions experienced by our claimants during the past year have a treatment duration of one year or less.

 

The pharmaceutical impact is projected at a rate of 15%. This lower rate is due to the fact that some of the uses of the prescribed antidepressants and antipsychotic medications are also used in the treatment of non-mental health related conditions (pain, etc.) and thus the department projects a smaller percentage impact.

 

The growth in expenditures from FY 2015 through FY 2017 is based on the projected rate of medical inflation of 3.2%

 

During CY 2012 the department paid a total of $168,176.04 in mental health related treatment expenses for 224 claims.

 

During CY 2012 the department paid a total of $2,025,134.60 for Antipsychotic and Antidepressant medications.

 

 

 

 

 

 

 

Prepared by: Jennifer Lockwood, LSO  Phone: 777-5248

(Information provided by: John Ysebaert, Department of Workforce Services; Phone: 777-7672)