Insurance & Care NSW (icare) says new research proves workers’ compensation schemes face “inflated prices” for medical services, with NSW the worst example.

Its findings show medical imaging services purchased in NSW are available more cheaply in other states, and are cheaper still if bought outside state-run workers’ compensation schemes.

icare says services bought by icare for $18.8 million would have cost $9.7 million if they had been bought by WorkSafe Victoria, $11.3 million for WorkCover WA and $11.4 million for ReturnToWork SA.

“When it comes to purchasing medical imaging, NSW is one of the most expensive workers’ compensation jurisdictions in Australia,” Workers’ Insurance Group Executive John Nagle said.

“Also key in the findings is that all schemes included in the study paid a much higher cost for medical imaging services than Australian consumers outside of state-run workers’ compensation schemes.

“In effect, our $18.8 million cost for medical imaging would have been only $6.3 million if the services were charged at 100% of Australia’s Medicare Benefits Schedule.  

“The data suggests workers’ compensation schemes in many Australian jurisdictions are paying inflated prices for medical imaging – with NSW facing particularly high prices.

“The regulated set maximum fees are exactly that – a maximum,” Mr Nagle said. “This study shows that much lower prices for the same services can and are being attained. icare is in discussion with the industry to achieve a more equitable and sustainable pricing schedule.”