Published: 09-Apr- 2013 | Product Category: Claims
, Risk Consulting
, Workers' Compensation
| Comments: 0
VCORESM is a proprietary tool developed by Marsh Risk
Consulting’s (MRC) Claim Consulting Practice for workers’
compensation programs that provides a comparison of claims
administrators based on the estimated net variable costs
charged per year. VCORE is designed to assist you in
identifying which workers’ compensation vendor(s) can best
help you improve your financial outcomes. While claim
administrators comparisons are commonly based only on unit
cost such as claim handling fees, bill review fees, and other
administrative fees, these costs make up a small percentage
of the variable cost. By providing comparisons of claims
outcomes, VCORE offers a much more accurate way to
compare administrators and reduce program cost.
Who It's For:
What You Get:
- Clients who have retained Marsh to
place their workers’ compensation
- Marsh workers’ compensation clients
who are evaluating costs charged by
claims administrators prior to
selection or contract renewal.
- A detailed comparison of estimated
variable costs charged by claims
administrators, including medical
cost outcomes and claims
- An assessment of total cost outcomes
to help you select the most
appropriate claims administrator.
- Valuable information for negotiating
with claims administrators to reduce
- An innovative cost analysis tool
available only from Marsh.
One of the biggest challenges a
company faces is how to control the
variable costs of its workers’
compensation program. Differences in
claims administration philosophy,
policies, and procedures have made it
difficult to accurately compare the total
cost outcomes of competing
administrators. VCORE assists you with
a consistent and accurate evaluation of
claims administrator cost outcomes
during workers’ compensation
placement or claims administrator
selection. VCORE uses actual data from
competing claims administrators to
level the playing field and provide side-by-side comparisons of estimated net variable costs. VCORE calculates anticipated workers’ compensation variable costs in two key areas—medical costs and claims administration fees.
More Accurate Estimates of Medical Bill Review Outcomes
The bill review service provided by claims administrators is intended to reprice medical bills to state mandated or usual and customary allowances. However, not all bill review programs are the same due to differences in procedure and software. In addition, not all claims administrators have the same network providers or the same discount arrangements. As a result, the total medical costs you pay may vary significantly among vendors.
- VCORE uses a claims administrator’s medical bill review outcome data and estimates your net medical costs with that vendor by applying your specific geographic distribution, claims history, and exposure information.
- The comparative breakdown of total medical cost outcomes can help you evaluate how well an administrator reprices medical bills, allowing you to better assess your total cost of risk and negotiate favorable terms.
More Precise Claims Handling Fee Calculation
Total claims handling fees vary based on the definition of “indemnity” or “medical only” claims and the price set for each type. These definitions can vary greatly among administrators, resulting in significantly different claims handling costs.
VCORE estimates the total number of indemnity versus medical-only claims for a particular administrator by considering the vendor’s own definition of claims. This gives you valuable information about the projected total fees you might expect from different administrators.
The Value of VCORE For Your Organization
With VCORE, you can better understand and manage the variable costs of your workers’ compensation program, including the claims handling and medical cost outcomes. By analyzing your variable costs with VCORE, you gain a powerful tool for selecting appropriate vendors and better controlling your total cost of risk.