Workers Comp Bill File Review – File Selection Critical To Success
A Workers Comp Bill File Review can cost you more $ than expected.
Our clients often ask us if a meeting with the Workers Comp claims adjuster on all files is a good idea.
Not all files need to be reviewed. In fact, reviewing certain files may cost more premiums than if no files are reviewed. As I said the last post, BE PREPARED. Covering the files that have high reserves is your mission, not covering the files where the reserves are low and need to be increased. Remember, your premiums are based on Total Incurred. Total Incurred on a file is the Paid + the Reserves (Total Incurred = Paid + Reserves). There is little you can do about the paid amounts on files, as the funds have been spent. The area to zero in on with a laser-like examination is the open reserves.
The key is to know which files to review and which ones to leave alone. The adjusters will eventually get around to adjusting the reserves on all of your files. However, you do not need to point them out to the claims staff. Timing your reserve review on your Unit Stat cycle is also critical. Please see our other posts on the Unit Stat date.
How do you know which Workers Comp file review to examine? As I posted previously, it takes an adjuster about 5 -7 years to feel comfortable with setting reserves on files. Can your agent help you? Yes, if they have a claims background (which is HIGHLY unusual) or an experienced claims analyst on staff. That is also very rare.
Calling in a Workers Comp premium auditor and a claims expert may be a good idea. In a recent survey, the premium dollars saved (Return on Investment) is about $6 in premium savings to $1 in fees paid to a premium auditor or claims expert.
Next Up – Self Insureds and Workers Comp File Reserves
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