How do self insured companies determine the "threshold" I don't quite understand it except that it is money set aside somehow and comes into play when determining the amount paid to claimant to close a worker comp case. (Ohio). How do acturarists determine the max amount to pay out to claimant? Thanks for all info
Thank you for your reply. I have been to that website and didn't find anything relative to my question or it may be there but I can't find it.
Oops, answered too quick. I hadn't seen this document. Will read it now. Thank you. Any insight to this issue appreciated.
I'm not that familiar with ohio self-insurance details or the term "threshold".
Could they be talking about a reserve? That's the only thing that I can think it would mean.
What is a reserve? Is it an amount of money that a self insured company must keep in order to settle any worker comp claims?
How is a settlement made when there is no monthly maintenance or salary being paid out? Only medical;physician visits and medication?
Thanks for your help
A reserve is an amount "set aside" to handle projected costs of a single claim. Both insurance companys and self insureds use reserves.
A reserve is an amount "set aside" to handle projected costs of a single claim. Both insurance companys and self insureds use reserves.
Thank you for your response. Do you know how the amount that is set aside is determined? Also, do you know how the amount to be offered to settle a claim is determined? Someone told me the company would look at life expectancy of claimant and total dollars per year expected to be payed out for medical costs. Calcuting life expectancy seems kinda gruesome a task...
I know part of The 'set aside' figure is based on likely future surgery, medicine and PT costs. This figure has to be acceptable to Medicare.
Lilly