Claim Review Reveals Misallocated Charges and Helps Reduce Annual Premium
In reviewing the 17 identified claims, Brown & Brown noticed a payment trend. Charges for independent medical evaluations and any associated charges were being incorrectly accounted for as a medical expense rather than an allocated loss adjustment expense (ALAE).
The carrier was engaged to address its payment practices, as they were not up to the national council and state bureau standards. After reviewing those guidelines, the carrier agreed to reallocate all incorrectly coded charges from the previous four years.
Brown & Brown found 43 claims that required adjusting, totaling nearly $100k. These adjustments reduced the customer’s experience modification by .03 for the current term and its annual premium by over $30k.
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