News Releases

November 6, 2007

Cypress Care Case Study Presented at 16th Annual National Workers’ Compensation and Disability Conference & Expo

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Results of 2007 Survey of Pharmacy Management in Workers' Compensation Unveiled

Chicago – Joe Paduda, principal and founder of Health Strategy Associates, and Francis Fey, CEO and president of JI Companies, presented a case study featuring Cypress Care’s work with JI Companies during the 16th Annual National Workers’ Compensation and Disability Conference & Expo being held in Chicago, November 6-8, 2007. The presentation, “An Integrated Approach to Managing Prescription Drugs in Workers’ Compensation,” took place on Tuesday, November 6th, at 2:45 p.m.

Drug costs in workers’ compensation are increasing at double-digit rates, and restrictive fee schedules have not slowed the rate of increase. Paduda and Fey demonstrated how Cypress Care developed and implemented a comprehensive drug management program for JI Companies that has resulted in significant decreases in the use of high-cost narcotics, less work for adjusters, lower claims costs and a better working relationship with treating physicians.

“According to a survey we conducted with Cypress Care, nearly 15 percent of workers’ compensation medical expenses are for prescription drugs,” said Paduda.  “Effective management of workers’ compensation drug costs – without creating additional work for claims adjusters - requires an integrated, comprehensive approach that captures information from the moment the first pharmaceutical is prescribed through the completion of treatment.  It also provides transparent access to full claims information in order to immediately address inappropriate courses of treatment.”

Cypress Care worked with JI Companies, an administrator of workers compensation and group health programs for employers in the public and private sectors, to develop and implement both an “enhanced” clinical pharmacy authorization (CPA) and a clinical pharmacy review (CPR) program. Cypress Care’s clinical staff reviewed each claimant’s treatment plan to identify duplicate therapies, potential harmful drug interactions, possible over dosages and/or fraud and abuse. Cypress Care also developed a “target” list of drugs that are often over prescribed or refilled too many times. The system fills the initial prescription for a “target” drug then the prescription is flagged and the CPA program activates. Cypress Care’s in-house clinicians then contact the treating providers to discuss each patient’s history and treatment plan, and provide information about possible alternative therapies. The goal is for the treating providers to consider the recommendations of Cypress Care’s clinicians to ensure that the most appropriate care is given, which ultimately leads to reduced claims costs for the insurer.

“Applying Cypress Care’s clinical expertise to our prescription drug management program delivered tangible, quantifiable results,” said Francis Fey, CEO/President of JI Companies. “We now see hard dollar savings of $6,830 per claim annually, for the claims targeted by this program, as a direct result of our partnership with Cypress Care.”

During the presentation, Paduda also discussed the results of the 2007 Survey of Pharmacy Management in Workers’ Compensation. This current national survey of 22 decision makers at workers' compensation payer organizations was sponsored by Cypress Care, and provides information on their opinions of prescription drug cost management in workers' compensation.  The survey covers the scope of the problem, key product/service attributes, cost and inflation trends, and perceptions regarding vendors, solutions, Third Party Billers and the Pharmacy Benefit Management industry.

About JI Companies
Serving organizations throughout Texas and the southwest for over 22 years, JI Companies specialize in full service third party administration for all types of self-funded risk management programs: workers’ compensation; liability and property coverage; and health, dental, COBRA and Section 125 programs designed for employee benefits. JI provides public and private entities and associations with efficient claims administration, program management, utilization management, performance-driven results, and unparalleled customer service.
www.jicompanies.com.

About Cypress Care
Cypress Care is a leader in the management of rising claims expense related to pharmacy and ancillary service benefits for the Workers Compensation, Auto Insurance and Medicare Set-Aside markets. With its comprehensive, powerful technology and industry expertise, the company has created a new standard in cost management and customer service. Cypress Care’s strategic objectives center around the delivery of products and services that address a broad spectrum of integrated healthcare services that contribute significantly to the reduction of claims cost. The company’s customers include some of the largest private/governmental employers and insurance companies in the United States. For more information, please visit www.cypresscare.com.