10 Ways to Reduce Claims Expenses in Your Captive

RIM article moneyIn the article “10 good non-tax reasons to have a captive” the need to monitor claims expenses is mentioned. Indeed there is a lot that your captive can do to reduce your claim expenses and increase claims closures says Linda Webb, CEO of Risk Integrity Management.

 

At RIM, we focus on aggressive claims handling to ferret out fraud, waste and abuse, all the while making sure the claim is moving along towards closure. Captive owners and investors shouldn’t have to, often don’t know and quite frankly don’t have time to drill into these expenses. Bringing someone with this expertise is critical to help your captive succeed. Every captive needs a captive protection plan where the captive expenses are monitored. Our RIM Team, builds the controls to put in place, conducts the audits, and monitors it to make sure the expenses are appropriate and controlled.

 

Here are 10 ways to reduce your claims expenses in your captive:

1. Make sure the medical management fees are in line with the service they are providing.

2. If utilizing a bill review system, be sure to audit the bill review vendor also to make sure you are getting maximum benefit.

3.  Negotiate high hospital bills.

4. Make sure the claim is being investigated within first 48 hours and identifying subrogation recovery potential.

5. Look for pre-existing medical conditions.

6. Check the claimant’s prior medical history with hospital, clinic, and pharmacy checks.

7. Be sure to check social media to see if the claimant is active.

8. Check the claimant’s activity level to see if it correlates to their medical treatment plan.

9. Utilize the most effect surveillance techniques.

10. Be sure to check the claimant’s prior claims history.

 

Excerpt from Article: With a captive, the business owners can administer their own claims on their own terms, and get on top of claims quickly before they spin into something much larger. The business owner can also choose to not settle frivolous claims, force the plaintiff’s attorney to incur time and expense litigating the claim before dismissal, and thus deter future lawsuits.

A captive’s ability to draft its own policies, choose its own attorneys, and administer its own claims are all important cost-saving benefits of a captive — which now brings us to the biggest money-saver of a captive of all. Read the article here

 

RIM globeAbout Risk Integrity Management (RIM)

Our mission at RIM is to protect your company’s assets, lessen exposure, mitigate claims losses, reduce loss ratios, identify vulnerabilities, provide proactive control measures and deter fraudulent acts perpetrated against your company, its subsidiaries, and the customers to which you serve. Linda Webb, aka The Fraud Dog, is the Founder and CEO of Risk Integrity Management, LLC.

 

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