CLAIM RUN-OFFS

Improper average weekly wage development, creating a situation where the claimant is receiving more money in workers’ compensation benefits than if he/she was actually working, can be one factor inherent in old open claim liabilities.

Old claim liabilities, those claims open for four or more years or difficult claims can negatively affect an organization’s bottom line. The challenge is that the longer a claim remains open, significantly increases the chances of a poor resolve and conversely an emphasis on closing claims too quickly may also achieve the same poor results.

Certainly, a claim run-off is no project for amateurs. Further the difficulties and complexities inherent in a claim run-off exceed the abilities of most third-party claim administrators.

Wramsco’s unparallel success with claim run-offs is well documented. We have the knowledge and experience necessary to properly evaluate claim liabilities and develop a sound strategy to resolve them within a realistic time frame at their correct monetary value.

The proof is in the resolution of the claims. Wramsco consistently exceeds our clients’ expectations by closing a large percentage of liabilities below previously established reserves and/or actuarial projections.

Some examples are:

Client:                                       Fortune 500 National Holding Company

Insurance Programs:               Self-insured and large deductible programs

Prior Claims Handling by:      Two nationally known third-party administrator

Project I:                                  Average claims had been open for 15 years.  Wramsco closed claim liabilities well below previously set reserves.

Client Savings:                        $714,000

Project II:                                Wramsco was asked to intervene and settle a claim that had been open for 21 years. Claim had open reserves of $1,200,000 as established by the third-party claim administrator. Client had also previously hired an independent actuary that set minimum value for open reserves at $1,100,000. After a thorough claim audit Wramsco negotiated with injured employee and his attorney to settle and close claim for $54,000.                                    

                                                 After a thorough claim audit Wramsco negotiated with injured employee and his attorney to settle and close claim for $54,000.

Client Savings:                        $1,046,000

630-960-1020
630-960-9725 (fax)
tlwalker@wramsco.com