CONTROL OF WORKERS-COMPENSATION CLAIMS AND COSTS IN THE US ARMY

The Army Medical Department has been implementing initiatives to reduc e workers' compensation claims and costs since 1983, After years of an upward trend, reductions in both costs and claims were reported for 1 995 and 1996. To assess efforts at managing workers' medical care and compensation in the Army, we reviewed Department of Defense and Depart ment of the Army documents and studied data on claims and costs. We fo und several programs that were launched to control claims and associat ed costs. None of these programs adequately addressed the absence of r eal-time financial incentives for reducing compensation costs, a lack of acceptable workers' compensation data collection and data managemen t systems, and a lack of emphasis on medical case management. To susta in this trend of decreased costs and claims, the Army must focus on (1 ) incentives, (2) data management systems, and (3) a comprehensive pla n for medically managing workers' compensation claims and costs.