BWC Board Releases MCO Study


The board of directors heard a presentation on a second phase of a study of managed care organization (MCO) performance in the Ohio system. Unlike 20 years ago when Governor Voinovich called the Ohio workers’ compensation system the “silent killer of jobs,” the Ohio system today is a national leader on any number of metrics, including medical. However, that success comes at a cost. The study indicates that MCOs are paid 27% of total medical costs; meanwhile, benchmarks in from other programs are 15% of total costs for administrative costs. That suggests a possible overpayment of $70 to $80 million for MCO services. Those costs, of course, are born by employers. The BWC will establish work groups to study this matter in detail. The OMA will be there. 12/20/2018