CMS 2024 WCMSA Metrics: Key Insights into Costs and Trends
The Centers for Medicare and Medicaid Services (CMS) has released its 2024 data on Workers’ Compensation Medicare Set-Aside (WCMSA) reviews. This year’s metrics highlight two significant trends: declining prescription drug costs and rising medical treatment costs.
For employers, insurers, and other stakeholders, understanding these trends is crucial for effective planning and cost management. Here’s a breakdown of the key findings and how Tower MSA stands out in the industry.
CMS WCMSA Metrics Overview: 2020–2024
CMS’s fiscal year 2024 data provides a five-year perspective on MSA reviews, comparing proposed amounts to CMS-recommended (approved) amounts. Here are the major takeaways:
- Consistency in Review Numbers:
CMS completed 14,862 MSA recommendations in 2024, closely aligning with the five-year average of 15,138.
- Decrease in Recommendations:
After a 9% rise in recommended amounts between 2022 and 2023, 2024 saw a 6% drop.
- Stable Average MSA Amounts:
The average approved MSA decreased slightly to $85,927 in 2024 from $86,453 in 2023. However, this remains above the five-year average of $83,851.
- Variance Between Proposed and Approved Amounts:
The variance, which increased to 22% in 2023, remained steady at 21% in 2024.
Key Trends in Costs
- Prescription Drug Costs Continue to Decline
CMS data reveals a notable 33% decrease in average prescription drug costs over five years, from $26,574 in 2020 to $17,807 in 2024. This decline reflects:
- Reduced opioid use in workers’ compensation cases.
- Increased allocation of generic medications over brand-name drugs.
- Treatment Costs Are Rising
While prescription costs have fallen, the average treatment costs have increased by 15% since 2020, signaling a shift in the cost structure for MSAs.
How Tower MSA Partners Compares to Industry Averages
Tower MSA Partners has consistently achieved lower costs for its clients, significantly outperforming industry averages in both total MSA and prescription drug components.
- Average Approved MSA (2020-2023):
- CMS: $82,332
- Tower: $63,005 (23% lower)
- Prescription Drug Component (2020-2023):
- CMS: $22,048
- Tower: $14,286 (35% lower)
Through targeted interventions like our Physician Follow-up service, Tower mitigates costs while ensuring compliance with CMS requirements.
Why CMS Metrics Matter
These annual metrics provide invaluable insights for stakeholders managing workers’ compensation cases. They not only reflect trends in CMS review processes but also offer benchmarks to evaluate cost-saving strategies.
Tower MSA’s cost-effective approach demonstrates that significant savings are possible with a robust review and allocation methodology.
Have Questions? Let’s Connect
If you want to learn more about how CMS metrics impact your workers’ compensation program—or explore cost-saving opportunities—contact Dan Anders, Chief Compliance Officer, at Daniel.anders@towermsa.com or call 888.331.4941.
