Open Claim Medical Custodial Account
There are a number of states that prohibit by law the settlement of claims with a future medical component. These claims will likely remain on an adjuster’s desk for years, requiring continual attention, continual reporting, and continual hassle.
That is why Medivest created the Open Claim Medical Custodial Account. The Open Claim Medical Custodial Account reduces the hassle associated with administering the medical component of an unsettled claim. It takes the burden of medical claims processing and the compilation of annual reporting away from the adjuster.
How does the Open Claim Medical Custodial Account compare to conventional open claims handling?
|Conventional Handling||MCA Open Medical Account|
|Reserves||Remain constant||Reduced through annuity|
|Claims Processing||Handled by the adjuster||Handled by Medivest|
|Annual Reporting||Data compiled BY the adjuster||Data compiled FOR the adjuster|
The Open Claim Medical Custodial Account will allow you to reduce your reserves and get the claims payment portion of the file off your adjuster’s desk, reducing labor and headache. All correspondence with the claimant/applicant and their medical providers will be handled by Medivest. This saves time and money.
Here’s How It Works
The specific medical expenses that are covered by the MCA Open Medical Account will be clearly spelled out during account setup. An annuity is setup to fund the account, and from that account, Medivest will price all approved medical bills for the injured person, according to the requisite fee schedule. The total funding amount is ultimately up to the adjuster. However, if the adjuster would like assistance in determining the total funding amount, Medivest can prepare a Medical Cost Projection for an additional fee of $1,750.
In the event that additional funds are needed to cover unanticipated expenses, the adjuster will be provided documentation to replenish the account. The annual fee can conveniently be paid from the account, or through a separate structured annuity. All information required to facilitate annual reporting will be provided to the adjuster by Medivest. At the time of the injured person’s death, any funds not used will be returned to the adjuster.