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A study that weighed the advantages of the State Fund-Kaiser Permanente Alliance versus State Fund’s non-Alliance participants produced some impressive results.

The outcome of the California Workers’ Compensation Institute (CWCI) study released Sept. 18 concluded that the employers participating in the Alliance saved an accumulative $238 million in claims costs since 1996.

State Fund Vice President Connie Raiche said "The Alliance demonstrates that an insurance carrier and a medical provider can successfully collaborate and draw upon their respective industry expertise to save money for employers and deliver quality care for employees. The study validates that the Alliance has produced significant savings and quality care for multiple years. The study may be the longest running and most extensive ever conducted on a program of this type in California's workers' compensation system."

Bottom line, the Alliance claims treated by Kaiser Permanente saved an average of approximately 41 percent in medical costs when compared to non-Alliance State Fund claims, according to CWCI researcher Alex Swedlow, who authored the study.

The study also confirmed the following cost saving benefits:

• 41% lower medical costs among medical paid claims.
• 6% lower rates and 11% lower average costs for total temporary disability claims.
• 19% lower temporary disability days per claim on average.
• 33% less attorney involvement.
• 39% lower total medical paid for non-litigated claims and 16% lower total medical paid for litigated claims.

Kaiser Permanente's Northern California Coordinator of Occupational Health Douglas Benner, M.D. also noted that, "Reduced medical and disability costs can be achieved along with high levels of patient satisfaction as demonstrated by the marked reduction in litigation by the injured worker."

Those involved with the study touted that the State Fund and Kaiser Permanente partnership is ahead of this year’s legislation to reduce medical costs by seven years.