Workers' Compensation Medical Price Index: Q4 2017

The National CPI for All Services, as reported by the Bureau of Labor Statistics, in February 2018, is 123.56, which reflects a 2.7 percent increase since Q2 2017 and eliminates the decrease seen in the previous quarter. For the same period of time, Q2 2017 to Q3 2017, the National Workers’ Compensation MPI increased 2.3 percent and as of February 2018, sits at 113.03. Since Q1 2006, the MPI has increased 13.3 percent while the National CPI for All Services increased 23.6 percent.

• Charges associated with physical medicine services experienced a 2.2 percent increase since Q3 2017 relative to Q2 2017. This increase brings the total unit cost change for physical medicine since Q1 2006 to 8.3 percent, significantly below the National CPI for All Services reported by the Bureau of Labor Statistics. Please recall that the physical medicine MPI is looking strictly at unit charge while holding utilization constant.
• The unit cost for major radiology services experienced by the workers' compensation industry saw a 2.5 percent decrease in Q3 2017 when compared to Q2 2017. It remains below the average unit charge seen by the industry in Q1 2006.
• The unit cost for evaluation and management services increased 9.2 percent in Q3 2017 when compared with its Q2 2017 result and eliminates the decrease experience seen in the previous quarter. Since Q1 2006, evaluation and management services have seen unit charge increase 39.9 percent as reflected by the index value 139.9.
• The unit charge for professional services in the emergency room experienced a 5.1 percent increase in unit charge in Q3 2017 when compared to Q2 2017 and eliminates the decrease experience seen in the previous quarter. Since Q1 2006, professional services in the emergency room have seen unit charge increase 72.9 percent as reflected by the index value of 172.89.

The National Workers’ Compensation MPI increased 2.3 percent and as of February 2018, sits at 113.03

(Source: U.S. Bureau of Labor Statistics, adjusted. Consumer Price Index- All Services- All Urban Consumers, Series CUUR0000SA0. Available at http:// data.bls.gov/cgi-bin/surveymost?cu)