WC Loss Run Reserve Levels Crucial For Public Employers
Certain organizations need to concentrate on WC Loss Run reserve levels now. Yesterday, I pointed out that employers with a renewal date of 1/1/14 are wasting time performing loss run reviews. That is not 100% true as at least your company is beginning the loss run schedule for your 7/1/14 Unit Stat date.
Most governmental and quasi-governmental organizations renew on 7/1/14. If this is true for your company or organization, you must act now to keep your E-Mod as low as possible. You have until 12/31/13 as this is when your reserves will peg to your E-Mod for your 7/1/14 renewal.
The quickest way to find out your reserve levels is by having online access. Loss runs can be downloaded at will in most systems. If not, you will need to contact your agent or insurance carrier to obtain a loss run. Obtaining your loss runs may take some time to accomplish as there can be a delay of up to two weeks.
If you have had multiple WC carriers in the last five years, you will need to obtain a loss run from each of the WC carriers. Knowing which claims on which to question the reserve levels can be a daunting task. One can cost their company or governmental organization by actually calling the claims department’s attention to a file that needs an increase in reserves.
The best way to contact your claims staff is by email. As I have said in numerous posts on this blog, claim departments do not rush through reserve decreases. This process takes time as the supervisor, claims manager, and VP may all have to sign off on a reserve decrease. Larger files usually take weeks to pass from desk to desk.
Only contact the WC claims departments on certain claims. Calling up the claims department and complaining that all reserves are too high will likely result in no reserve decreases and may alienate the working relationship that you have had in the past.
If you feel overwhelmed by the reserve reduction review task, then it may be best to wait until the
middle of 2014 to start your reserve and loss run review. The best time to start is just after your company renews as you will have six months to accomplish this sometimes difficult task.
Most claims offices operate with skeleton crews just before Christmas to after the New Year. You may find your request to have a reserve lowered for your 1/1/2014 Unit Stat Date will not be accomplished until after the New Year.
There is a formula on this blog of when to do reserve level reviews.
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