News Headlines Article

California doctors use loophole to raise drug prices, study finds
Sacramento Bee

Some California physicians who treat workers with job-related injuries and dispense drugs to their patients are exploiting a loophole in state regulations governing drug costs to increase their reimbursements by as much as 400 percent, a new study has found.

Three researchers for the Massachusetts-based Workers Compensation Research Institute discovered the loophole’s impact while studying the effects of reforms aimed at reducing costs of treating workers’ injuries, which are borne by employers.