I will be introducing legislation to improve the workers’ compensation (WC) system in Pennsylvania by providing an option for employers to utilize a healthcare network. Current law only allows employers to utilize a network approach – known in WC as a “provider panel” – for the first 90 days of treatment.

Working in Pennsylvania has never been safer as employers continue to emphasize and invest in workplace safety and employee health. The result has been a gradual decline in the number of workplace accidents. At the same time, the average cost of individual claims continues to increase and can still spiral out of control – which can lead to significant insurance cost increases on employers and often worse outcomes for the worker.

Rising healthcare costs is a challenge for all types of health insurance, which is why strategies have been broadly implemented to mitigate costs, including provider networks which are standard in commercial and public health insurance. Network care helps ensure more effective coordination among health professionals to improve outcomes for patients and ensure acceptable standards of provider quality and integrity.

The time period in which employers can utilize network care has been increased over the years – from 14 days, to 30, and eventually 90 – as its benefits to the patient and system have become apparent. For example, the Department of Labor and Industry conducts surveys of injured workers – the most recent analyzed patient satisfaction based on their access to a “provider panel” and showed that the highest overall level of satisfaction (92 percent) was reported by employees to asked their employer to choose a healthcare provider from the panel. Overall, they concluded that “An impressive average of 88 percent of panel users said they were moderately, very, or extremely satisfied with the care they received.”
 
According to the Workers’ Compensation Research Institute, most states provide employers a managed care option. Many states, like New Jersey for example, allow employers to simply choose providers – no network or time limit. Providing for a network option is a reasonable middle ground approach that will help control costs, prevent and combat fraud and abuse and make Pennsylvania more competitive; all while helping to ensure that quality care and employee health remain the top priority.

Thank you for your consideration in co-sponsoring this legislation.