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Snapshot: 2019 REG Formulary report

Workers’ Compensation Research and Evaluation Group

In 2011, the Texas Department of Insurance, Division of Workers’ Compensation (DWC) implemented a pharmacy closed formulary to manage drug prescriptions to injured employees. Prescriptions excluded from the formulary like investigational and experimental drugs, “not-recommended” drugs (N-drugs), and compound drugs require pre‐approval by the insurance carrier before they can be dispensed. This study looks at injured employee outcomes such as return-to-work rates and health outcomes since the formulary was implemented.

Read the full report.

Published: October 2019 by the Workers' Compensation Research & Evaluation Group.

An overwhelming majority said they had no problems receiving their prescription drugs under the formulary. Among those with problems, a majority thought it was because the insurance company or health care network did not want this care provided.
Percentage of Injured Employees Who Said They Had Problems or No Problems Receiving the Prescription Drugs They Thought Were Necessary for Their Work-Related Injuries
Reasons Injured Employees Gave for Problems They Experienced Receiving the Prescription Drugs They Thought Were Necessary for Their Work-Related Injuries
  • Return-to-work rates for network injured employees consistently higher than for non-network injured employees after 2009.
  • Return-to-work rate for network injured employees averaged 90 percent before formulary took effect and 94 percent after.
  • Return-to-work rate for non-network injured employees averaged 87 percent before formulary took effect and 90 percent after.
Injured Employee Return-to-Work Rates, by Injury Year
High utilization of opioids has been linked to high addiction rates, an increase in accidental overdoses, and suicide. REG studies have shown measurable reductions in opioid utilization in Texas after implementing the closed formulary.

Number of Claims Receiving Opioid Prescriptions with 90+ Morphine Milligram Equivalents (MMEs)/Day, by Service Year
  • Mental functioning scores for network injured employees averaged 51.2 before and 51.6 after the formulary went into effect. These scores were higher in 2016 than in any other year since implementing the formulary.
  • Mental functioning scores for non-network injured employees averaged 50.0 before and 49.6 after the formulary went into effect. These scores were higher in 2016 than in any other year since implementing the formulary.
  • Mental functioning scores for network injured employees were consistently higher than for the non-network injured employees and the U.S. population.
Injured Employee Mental Functioning Scores, by Injury Year
  • Mental functioning scores for network injured employees averaged 51.2 before and 51.6 after the formulary went into effect. These scores were higher in 2016 than in any other year since implementing the formulary.
  • Mental functioning scores for non-network injured employees averaged 50.0 before and 49.6 after the formulary went into effect. These scores were higher in 2016 than in any other year since implementing the formulary.
  • Mental functioning scores for network injured employees were consistently higher than for the non-network injured employees and the U.S. population.
Injured Employee Physical Functioning Scores, by Injury Year

DWC implemented the pharmacy closed formulary for legacy claims in 2013.

DWC created a process to allow a prescribing doctor or pharmacy to obtain a medical interlocutory order (MIO) when an insurance carrier denies preauthorization of previously prescribed drugs. An MIO allows an injured employee to continue using the drug throughout the duration of the dispute process.

As of September 2019, 60 percent of the Medical Interlocutory Orders (MIO) requested were approved.

Medical Interlocutory Orders for Legacy Claims
While the goal of this study is to examine trends in key injured employee outcomes, pre- and post-formulary, it does not seek to measure causal links with the formulary. Since about 50 percent of new injured employees in Texas receive their medical services in health care networks, this study presents findings broken out by both network and non-network claims. Further, to ensure compatible injury years with the cost and utilization timeframes, REG realigned the network outcome data used for its annual Network Report Card study. While some Network Report Card results appear similar to the results in this report, the injury years differ.
79% got prescriptions they needed; 18,000 fewer claims with high-dose opioids; Return-to-work rates increased to 94%; Medical disputes down 38%.

For more information, contact: WCResearch@tdi.texas.gov

Last updated: 9/30/2021