Proprosed Automobile No-Fault Reform & Claims Cost Savings

In recent months, a bill for automobile no-fault reform in the state of Michigan was introduced into the legislature. Key highlights of the proposed reform according to the Detroit Free Press included a call for reduced auto insurance premiums with a reduction ranging from 20 to 50 percent over a three-year period and a cap on medical fees for those using Medicare who were injured in an auto accident. The bill would have given seniors the option to use Medicare instead of auto insurance and would have introduced provisions that allowed the state of Michigan to oversee any premium increases within the following five-year period.  

The proposed reform would also have introduced personal injury protection limit options for insureds to choose from, including the current unlimited benefit as well as a $250,000 and $500,000 limit option. The state of Michigan is currently the only state that provides unlimited automobile no-fault benefits to claimants injured in an automobile accident. While these limitless benefits assist with the indemnification of injured claimants, they also pose a challenge in terms of overall claims costs.  

The proposed automobile no-fault reform bill was ultimately not ratified. Regardless of any legislative changes, however, adjusters should review their current claims administration processes for opportunities to reduce overall auto no-fault claims costs for their insurance company. To assist with this process, review the following three questions to ensure you are maximizing cost reducing efforts on all no-fault claims.  

First, is your insurance company working with a third-party administrator (TPA)? Partnering with a TPA on auto no-fault claims brings about cost reductions in a variety of ways. Experienced TPAs will have valuable knowledge and resources for adjusters to draw upon throughout the entire lifecycle of a no-fault claim. Additionally, the administrative burden on adjusters will be greatly reduced since a TPA will take over several aspects of claims administration, leaving the adjuster with the opportunity to maximize his or her time on each claim.  

Second, does your insurance company have pre-authorization processes in place? With every claim involving prescription drugs, your insurance company should be utilizing a pre-authorization procedure. Implementing this process will reduce claims costs by eliminating payouts on non-auto-related prescriptions for claimants. Furthermore, every prescription that a claimant fills that is auto-related will not require them to pay out of their own pocket. Claimants are shown to be more satisfied with the claims process when they do not have to pay directly for their auto-related prescription medicines.  

Finally, does your insurance company have discounted rates in place for claimant prescriptions and home health care products and services? An experienced TPA will have an expansive network of providers that have agreed to offer discounted rates to an insurance company and its claimants. Without this network and the pre-negotiated rates, your insurance company may be paying too much for prescribed services under its automobile no-fault claims.  

Insurance carriers contracting with Northwood as a TPA on automobile no-fault claims will realize reduced costs through a variety of ways. Please contact Rosanne Brugnoni at 586-755-3830 ext. 3771 for a more customized look at ways you can reduce costs for your insurance company. 
https://www.northwoodinc.com/proprosed-automobile-no-fault-reform-claims-cost-savings/

Michigan’s Upcoming Workers’ Compensation Decreases & Claims Cost Savings

As 2017 draws to a close, workers’ compensation pure premium advisory rate changes for 2018 have been announced. For the coming year, Michigan’s work comp premiums will be reduced by 9.3 percent according to the Insurance Alliance of Michigan’s (IAM) November 10, 2017, update. This update illustrates that between 2011 through 2018, employers paying for work comp insurance in Michigan will have seen a total decrease of approximately 45 percent. This represents a claims cost savings of about $446 million over those seven years. In contrast, an average increase of 4.9 percent has been observed nationally and IAM reports that Michigan’s workers’ compensation premiums are among the lowest five in the United States.  

With the newly announced premium rate changes, it would be advantageous for insurance companies to take inventory of their current claims administration processes for workers’ compensation claims. A few key questions listed below will assist examiners in reviewing whether they are leveraging maximum cost savings techniques on workers’ compensation claims.  

The first question to ask in this cost review is whether the insurance company is partnering with a third-party administrator (TPA) of workers’ compensation claims since partnering with a trusted TPA will result in claims cost savings in a variety of ways. Experienced TPAs will provide valuable resources such as a call center with highly trained personnel that examiners may draw upon throughout the entire claims process. Furthermore, the administrative burden on examiners will be minimized since a TPA will handle multiple aspects of claims administration, allowing examiners to take on additional claims in their workload.  

Secondly, the offering of home health care products and services should be taken into consideration. Claimants experiencing injuries due to a workplace incident may recover more quickly if they are able to convalesce at home rather than in a hospital or a short-term rehabilitation facility. Insurance companies providing home health care products and services also tend to experience an increase in claimant satisfaction which further result in claims cost savings.  

The next question involves the use of a durable medical equipment benefits manager (DBM). As the nation’s leading DBM, Northwood has built an extensive network of medical providers throughout the nation. Each provider is subject to a thorough credentialing process before being accepted into the network and must agree to offer contracted durable medical equipment, prosthetics, orthotics and supplies (DMEPOS) fees to insurance companies and their claimants. These discounted rates translate into claims cost savings for both the insurance company and its claimants. 

Since 1992, Northwood’s clients have saved over $200 million with a nearly three-to-one return on investment ratio. For customized, additional information about partnering with Northwood as a DBM to maximize workers’ compensation claims cost reductions please contact Rosanne Brugnoni at 586-755-3830 ext. 3771 to schedule a call. 

Tips For Driving In Inclement Weather

The holidays are upon us. This means that we will be going over the river and through the woods to grandmother’s house. This time of year also means the chance for blustery skies, slick roads, and whiteout conditions. We’ll share with you how you can prepare yourself for driving in this winter season, and how to handle yourself when winter issues present themselves.

Prepare Yourself

One of the most important things you can do before you head out on the road is to prepare yourself and your car for the journey. How can you prepare yourself? You can begin by making sure that you’ve had plenty of sleep. You will need to remain alert on the roadways, not only looking for hazards but also remaining aware of the drivers around you. Another way you can prepare yourself is to have adequate clothing for the winter season. The best policy is to dress in layers so that items can be removed or added as needed to maintain the proper temperature. Keep a blanket in the car along with some snacks in case your vehicle gets stuck. Have a fully charged cell phone available as well.

Prepare Your Car

You can prepare your car by making sure that you have plenty of gas in the tank before you leave. One issue when the temperature drops is fuel line freeze up. By maintaining an adequate amount of gas in the tank, you can greatly reduce the possibility of your gas line freezing. The tank should never be left less than half full for an extended period. Additionally, make sure your tires are properly inflated, your fluids are topped off, and you have ice scrapers, and tire chains if needed. Be sure your headlights and signals are in working order.

While Driving

Remain aware of your surroundings and know the car that you are driving. Knowing your car means understanding how well the brakes work, how far in advance you need to begin breaking to adequately stop the car. Understand the drivechain for your car. Does it have a 4-wheel drive option?  Make sure that you have the correct weight distribution for your vehicle as well. This will affect your traction.

While you drive, be sure to maintain a proper distance between vehicles, if the winter season is very bad, then do not attempt to travel. When traveling uphill do not apply the gas heavily. This will cause your tires to spin, cause a loss of traction, and a possible slide down the road you are trying to climb.

By remaining aware of your surrounding and taking the time to properly prepare yourself and your car, the only memories you will have from your holidays are grandma’s fresh baked cookies.

Visit our website at https://www.northwoodinc.com/tips-driving-inclement-weather/