Workers Compensation Utilization Review Nurse in Gallagher Bassett

Six weeks ago I predicted:

TPAs will add more business organisation, mostly from carriers.
Equally work comp continues to compress, insurers will ramp up efforts to shed assets and expenses to reduce their cost structure. By outsourcing claims, carriers are trading the loftier stock-still costs of a claims infrastructure for the variable cost of a per-claim admin fee.
The smarter carriers will negotiate hard and so they don't get screwed past medical management and other not-stock-still fees…but many carriers aren't that smart…

and…Insurers will reduce staff, particularly in claims.

Here'southward an update.

There'due south been lots of rumors out there near AIG's plans to become out of the claims business and associated layoffs, so I reached out to AIG. (full conversation below)

Net is I'm hearing there have been layoffs in It (never a strong suit at AIG), work comp claims, and medical direction services.  Likely other areas equally well.

Focusing on piece of work comp/medical management, this is a) wholly predictable and b) likely to happen at other insurers.

The reasons are straightforward:

• work comp is a declining industry
  • in iv years there will be 10% fewer claims than at that place are today
• work comp is a archetype cash moo-cow; mature, throwing off lots of cash and brackish

The implications are clear – why would an insurance exec invest in a business that is failing, mode behind in technology investment, has an aging workforce and can't attract young talent?

Especially when it can outsource claims to a TPA, thereby:

• reducing stock-still costs and unallocated loss adjustment expense (ULAE)
• eliminating the demand to invest in It upgrades for claims and medical management systems
• getting rid of an older and expensive workforce and the bellboy costs for real estate, IT support, telecom, benefits and on and on.

Congratulations to Gallagher Bassett, which appears to have landed a lot more work. This will help GB immensely as information technology will gain acquirement information technology can use to make those IT investments, hire and train staff, and upgrade operations.

Finally, corporate-speak.

Why AIG would not reply questions clearly and cogently is across me. Without those answers, one has to await to bulletin boards and contacts at the company and those recently departed, sources that have – by definition – more narrow perspectives influenced and affected by the bear on of AIG's deportment and non-actions.

That doesn't mean those perspectives aren't valid – not at all. It does mean that you, dear reader, don't have the full motion picture as to what is happening at AIG and why.

What does this hateful for you?

If AIG work comp is a customer, pay very close attending.

Email conversation:

here's what I asked AIG

I'yard working on a blog post re carriers using TPAs for workers' comp claims.  I understand AIG is in the process of outsourcing WC claims to Gallagher Bassett; plain there was an internal communication to employees in December addressing this.

My questions:

1. 1. 1. 1. AIG has long used TPAs for claims handling, but also handled claims internally. Is AIG in the process of outsourcing all/well-nigh WC claims that were previously handled internally?
         2. If and so, what is driving this decision?
         3. Sources indicate the timing is Q2 2022; is this accurate?
         4. Indications are AIG is too reducing the role of HDI; can you lot speak to that?

Here's AIG's response:

AIG has entered a strategic partnership with Gallagher Bassett for the shared direction of our "bundled" workers' compensation claims in the U.Due south. This partnership volition combine AIG's in-house claims expertise and customer service with Gallagher Bassett'due south manufacture-leading infrastructure, analytics and engineering. AIG will continue to handle major loss and specialty claims and medical management, while as well providing technical and strategic guidance for all claim management and resolution.

And here'due south my follow-up

So, thanks for the statement.

Is AIG staff treatment claims?

Is AIG doing all the Managed care piece of work only using GB'southward IT for claims?

My agreement from AIG staff is that GB will handle claims, so I'm a flake confused.

AIG'south response was classic corporate-speak and – every bit y'all tin see – didn't reply my questions. AIG as well didn't respond to my follow-upwards.

bookerdefir1955.blogspot.com

Source: https://www.joepaduda.com/2022/02/23/cash-cows-corporate-cut-backs-and-corporate-speak/

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