Accelerated Settlement Solution Engagement
A diverse retail organization with thousands of stores and warehouses worldwide wanted to reduce Workers Compensation and Liability claim costs and improve standardization and control across the enterprise. We helped them in their effort to redesign and implement major improvements in a variety of areas of their risk and claim administration, including risk analytics, litigation management, and financial product services. The result? Tens of millions in annual cost savings – money that could be redirected from Workers Compensation and Liability claim costs to corporate reinvestment and earnings.
The internal risk and claim management department is a small group of experienced and knowledgeable persons with an enormous responsibility of coordinating numerous vendors and operations worldwide to serve in the administration and closure of claims. They have an experienced and capable Third Party Administrator who is providing daily claim administration services. The client provided us detailed loss runs for several years of data. After sorting and benchmarking the claims utilizing models and substantial risk and claim databases, Blackburn was able to organize the priorities of claims across various offices around the world. Our partners and associates focused on the key drivers of costs to determine what was applicable to the claim occurrence, and eliminate any other costs which were not associated with the occurrence. Then, utilizing our technology, products and professional services we were able to help execute closing strategies for all of the prioritized files.
Additionally, we found that our client's attorneys were following a standard process of managing and negotiating the litigation of the claims. With our assistance, the teams were able to interrupt the standard process and move the claim to closure by providing the necessary strategic resources.
How We Helped
During the process of analyzing our client's data, we found that an integrated Accelerated Settlement Solution approach would provide significantly reduced loss costs for individual cases and the programs versus a normal approach.
Additionally, we reviewed the normal timeframe to resolve significant claims, and compared the results with our source data. By employing an Accelerated Settlement Solution approach the teams were able to eliminate 20-25% of the time associated with "open" legacy claims.
After our analysis and with our solutions, the teams employed an integrated, specialized approach to these efforts including:
- Medical Lien Verification and Negotiation,
- Accelerated Settlement Medical Cost Projections,
- Medicare Set-Asides and MMSEA Section 111 Mandatory Data Reporting,
- Life Care Planning,
- Structured Settlements,
- Custodial Account Administration,
- Special Needs Trust Development, and
- Associated Financial Planning.
The teams are now utilizing Blackburn predictive models for all new occurrences which alert the entire team to claim loss control. Further, we have helped to eliminate redundant and disconnected analysis, variations in adjuster experience applied to the claim, and a tasked-based approach to the normal litigation services.
By using unique and integrated approaches, and an extensive results-oriented, technology-based benchmarking capability with experienced clinical teams, the final total costs of claims have been reduced by millions of dollars annually.