Innovation and Regulation: Managed Care Moves into Workers' Compensation

Abstract

Cost pressures faced by employers have forced a greater focus on workers' compensation cost containment practices and increased demands by employers for new approaches by insurers and vendors. This article examines the major trends in workers' compensation managed care and the regulatory requirements and limitations in different states. The nature of regulation and the barriers erected in some states make managed care part of the ongoing debate about approaches to cost containment and the quality of care in workers' compensation cases. Should public officials and employers support managed care? The answer begins with accurate measures and analyses.