Special Edition Workers’ Compensation Rate Change – January 2016


Ring in the New Year with Sweet Savings!

Do not make the mistake of overpaying for provider services this year. A new Fee Schedule with considerable cost savings takes effect on January 31, 2016.  The Office of Workers’ Compensation Management in Delaware recently confirmed that during the December 14, 2015 Workers Compensation Oversight Panel meeting the Panel voted to accept the Fee Schedule Subcommittee recommendations for cost reduction.  Specifically, the Panel passed a uniform 7% reduction below the current Fee Schedule.  This reduction is to be applied to every health care code and service other than for anesthesia.

All applicable codes will now be reduced by 27% total. The 7% reduction is in addition to the 20% reduction that was implemented in the January 2015 Fee Schedule.  These reductions will be reflected in the Fee Schedule beginning January 31, 2016.

The stated purpose of the 7% reduction approved at the December 14, 2015 Panel meeting is to meet the 5% reduction in aggregate workers’ compensation medical expenses that is required by Title 19, Section 2322B(3)(a). This is consistent with the actions taken in October 2014. On October 1, 2014, the Workers Compensation Oversight Panel created a new medical fee schedule for all providers, hospital and ambulatory centers which resulted in a reduction of 20% in aggregate workers compensation medical expenses in the year beginning January 31, 2015; an additional reduction of 5% of current expenses by the year beginning January 31, 2016, and an additional reduction of 8% of current expenses by the year beginning January 31, 2017.

Feel free to call the head of the Workers’ Compensation Department, Maria Newill for an updated fee schedule or Anthony Frabizzio, who serves on the panel which recommended the reduction, by calling 302-573-4800.