With its new rule requiring preauthorization of compound prescription drugs, Texas has become the latest state to attempt to curb the unnecessary use of compound drugs in workers' compensation.

The Texas Division of Workers' Compensation (DWC) drafted the rule to stop prescribers from continuing to exploit a loophole in the state workers' compensation drug formulary, one that allowed compound prescriptions to be filled without first obtaining preauthorization to confirm medical necessity for the injured worker.

Largely because of prescriber misuse, the DWC experienced a 46.4% increase in compound prescriptions from 2010 through 2014. The total cost of compound medications more than doubled, and the average per prescription cost rose from $356 to $829 in the same period.

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