Worker’s Compensation and the Meaning of Over-Reserving
To understand what it means to over-reserve one has to first understand the reserving process associated with the worker’s compensation process. Reserving is a commonly done act in which self-funded organizations anticipates how much the entire process involved with a worker compensation claim is going to cost. Naturally, over-reserving is when the company places too much money down and that their anticipated costs are lower or even significantly lower. This seems like a relatively minor issue, and one with a simple fix?
The Dangers of Over-Reserving
The worker’s compensation process is a confusing, and arduous one that can leave anyone not highly trained feeling in over their head. Considering most people don’t feel entirely too confident when estimating how much the process will cost it makes sense that they’d lean towards paying too much instead of too little. It is the natural human response when facing such uncertainty. However, this can place stress on a company and cause side-effects that would likely come as a complete surprised to anyone not well-versed in the process. When a company places money down for anticipated costs, it cannot be used for any other purpose. This at its core means the functionality and growth potential of the company can be hamstrung due to unnecessary funds sitting in an account when it could be reinvested into the company’s operations. This may sound like an unbelievably frustrating concept to those simply exercising reasonable caution, but it can be even worse. Premiums paid on the insurance related with these claims will typically be negatively impacted with higher amounts of money placed down in reserve for compensation claims. Meaning, the more you reserve the higher the premium paid on the insurance will be. The worst part is it is very difficult to be able to determine what to pay, and even if you’re currently falling into the trap of over-reserving.
MD Surgery’s Solution Based Approach to Over-Reserving
At MD Surgery we offer the ability to never have to worry about over-reserving. Instead of dealing with the threat of over-reserving simply purchase one of our industry standard bundles and let us take care of the rest. With our team of highly experienced health care professionals we can insure you do not take on the danger of over-reserving on compensation claims. In fact, we feel supremely confident in the amount of money you will save through us, and with out network of professionals we offer tremendous surplus value on top of that. We care deeply about providing the best service we possibly can, and one of those primary benefits is that you won’t be faced with wasted money or higher premiums as our industry veterans insure the amount needed to be paid is what paid, and the hassle of covering the litany of fees that can go into a surgery is covered. With us you can focus entirely on growing your company with the money saved from proper allocation and doing what you do best.
