Recent estimates indicate that pharmacy accounts for approximately 14.2 percent of total medical costs. More importantly, as a claim ages, pharmacy consumes an even greater percentage of medical costs -- by year three post-injury, pharmacy spend represents 80 percent or more of total workers' compensation medical spend.

The following data, taken from PMSI's 2009 Annual Drug Trends Report, compares and evaluates pharmacy spend to determine where you should focus the majority of mitigation efforts for optimal cost containment. Based on a data set of nearly eight million transactions ranging from 2006-2008, this year's report is one of the most extensive analyses of workers' compensation pharmacy transactions available.

Understanding the Spend

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