Workers Comp File Reserves Timing Important
I try to post information on Workers Comp file reserves this time of year. Why? The majority of Worker Compensation policies renew on January 1st.
The Unit Stat date for those policies is 7/01/11. Your companies Unit Stat date will occur 6 months AFTER your policy expiration date.It will not count for the current or prior policy year.
The Unit Stat date pegs your E-Mod reserves for the NEXT policy period. As posted often in this blog, my advice is to start your Workers Comp reserve reduction strategies by Mid-March, at the latest. Trying to negotiate reserves at the last minute with an insurance carrier will be an exercise in frustration.
The SECRET is knowing which claim reserves to negotiate and which to leave alone.Stirring up interest in the wrong file may cause a reserve increase instead of a decrease.If you have your loss runs handy or can obtain them online, then you have saved yourself two weeks in obtaining them.
Unfortunately, there is no structured answer on which files to examine and which to leave alone. As you look over the loss run, it is best to know the current medical status of your injured employees. There may possibly be a valid reason for an extremely high reserve figure.
If you have access to the adjuster notes, they will sometimes suffice for an actual medical status. If you have to obtain a medical or claims status from an adjuster, use email. Never call an adjuster saying that your company’s reserves are too high. You need some type of number analysis to substantiate your position.
Calling an adjuster went out of style ten years ago. I do not recommend texting an adjuster. That is too informal.
The bottom line is to get started NOW on your E-Mod for NEXT Year. You may be already running 17 days behind.
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