Structuring MSA's & Using Professional Administration
Settlement consultants, in a way, work the aisle between the insurance carriers and the injured workers to make a deal that works for both sides. (No shutdowns here!)
Batman thinks he is the better hero. Superman thinks he is the better hero. They both agree saving the day is #1.
Day in and day out, we talk with people who have been on Worker's Comp for years, even decades. We listen to their concerns over the possible increases in medical care costs, prescription needs and whispers of surgeries. Rarely do we meet a claimant who sees the first settlement offer and says "Let's do it!" There is always back and forth, and in our industry we are thankfully able to construct dynamic solutions that make the injured worker feel comfortable with settlement while staying within the authority levels and the reserves of the insurance carrier.
What we are hearing more and more from injured workers is that they don't want to have to do what their Work Comp adjuster already does; pay bills. They want things to stay the same, they want to be sure they will be covered if something bad happens. These are all valid and legitimate concerns and I can sympathize with them as I know paying medical bills is a pain!
The solution is out there and more and more insurance carriers, self-insureds and TPAs are getting on-board with it. Professional Medical Administration with a Medical Custodial company is where it's at! The cost is minimal, ranging from a one time fee of $750 to a couple thousand dollars (depends on size of future medical account). These custodial companies essentially pay the bills and do all the reporting to Medicare for the injured worker, so things pretty much stay the same (and in most cases, the injured worker gets some incentive cash to settle up!).
So here are the basics to getting it done, and of course it works best when you include us:
Structure the MSA and SAVE between 20% and 40% off future medical. The insurer/employer wins big by structuring the MSA. (Email me for a structured MSA quote).
Include a custodial account for the injured worker: The seed (1st year medical expenses + surgeries, etc.) and annual payments from the annuity go to the shared custodial account. All related medical bills are paid by the custodial account administrator. Claimants can treat with whomever, wherever. They receive discounted Rx, discounted medical treatment and annual reporting to Medicare, FOR LIFE.
Use part of the savings from the structure to be paid to the injured worker as an incentive to settle their case. The injured worker gets a little bonus and the insurance adjuster says goodbye! Case closed! It's a win for everyone!
"They settled the claim! Oh My Gosh!!! And saved 30%!!!
It's fantastic. More and more insurance carriers are getting on board when it comes to settling up future medicals for Worker's Compensation Claims, and we thank the medical custodial firms for assisting with that process!
If you would like more information about this or our Accelerated Claims Closure Program, please email Mike Hathaway
We are also available to attend settlement conferences and provide Structured Settlement training for Work Comp or Liability.