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OR Posts Claims Processing Administrative Cost Factor

13 Dec, 2010 WorkersCompensation.com

                               
Portland, OR (CompNewsNetwork) - This bulletin notifies insurers and self-insured employers of the revised administrative cost factor. TheWorkers' Compensation Division applies this factor to approved supplemental disability and claim cost reimbursements. The factor is calculated as specified in OAR 436-050-0180. This bulletin replaces Bulletin 316 issued Dec. 11, 2009.
 
Supplemental disability benefits quarterly reimbursement
If the insurer or self-insured employer pays supplemental disability, the division will reimburse the payer's costs from the Workers' Benefit Fund. (See OAR 436-060-0500 and Bulletin 325.)
 
Preferred worker claim costs quarterly reimbursement
The division will reimburse the insurer or self-insured employer's claim costs if a preferred worker has a new injury or occupational disease while employed under premium exemption.
 
The division calculates and adds the administrative cost factor to approved reimbursements. Insurers may not add the factor to their quarterly reimbursement requests. The annual factor applied is based on the date the insurer paid the cost. Insurers' administrative costs for specific claims will vary. The factor is intended to cover overall administrative costs for representative claims filed.

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