Workers Compensation Audit Turned Over To Collections – An Audit Problem

If you’ve had additional premium from a workers compensation audit turned over to a collection agency you know just how brutal those collection folks can be! Relentless is a word that comes to mind…and maybe a few others that should not be mentioned! So lets take a look at what happens when your audit has been sent to collections.

To begin, THIS SHOULD NEVER HAPPEN! DO NOT LET YOUR AUDIT GO TO A COLLECTION AGENCY! THERE ARE STEPS YOU CAN TAKE IF YOU FEEL YOUR AUDIT IS INCORRECT! Sorry about that…OK…got that out of my system.

Usually what happens is an employer receives a large, unexpected audit bill from their workers compensation insurance company. The first person they call is generally their insurance agent and in some circumstances the agent will be able to review the audit and help out, but not in all cases. If their agent can be of no assistance then the next call is usually to the auditor who performed the audit. The auditor may tell the employer of the audit dispute procedure that they need to follow if they feel there was an error with the audit, but the auditor is generally of no real help at this point. The next call they make is to the insurance company audit department. They may also inform the employer of the audit dispute procedure but can be of no other assistance. 

So here’s the critical part. The employer may at this time attempt to discover the error and follow the dispute procedure. Generally they will only be able to site the fact that their premium should not be so high and that there must be a mistake somewhere! Well that’s where the problem comes. When filing an audit dispute it is critical to site the exact problem, calculate the correct premium and present that information to the audit department for correction. Oh, did I forget to mention, that the employer is still obligated to pay the undisputed part of the audit?

Now while all of this is going on the audit clock is running. The insurance company has billed the insured employer for the additional premium and all they know is they have not yet received the payment. So at some point in time they will turn the account over for collections.

Sure most insurance carriers want the audit to be correct. And sure there’s an audit dispute procedure in place. But they also want their money and if the insured employer doesn’t pay up you can believe they will turn it over to a collection agency in a flash! 

Here’s a couple of points to remember when faced with an adverse audit:

  • Do not procrastinate! Time is wasting! As soon as you receive an audit bill from your insurance company the clock has begun to run.
  • If you feel your audit is incorrect seek outside help! Don’t Wait! Contact an independent workers compensation consultant. While you sometimes can go it alone, isn’t it better to have someone on your side that knows the procedures and pitfalls, that can assist you in determining if your audit is in fact correct or that can really identify and help correct problems discovered?
  • If your account has been turned over to a collection agency immediately contact an independent workers compensation consultant! There are several of us out there. Just google workers compensation consultant and make contact.
  • Remember the collection agency is just doing their job! They want to make it personal and they will follow through on collection procedures.
  • You need to verify your audit! Be proactive and make sure your audit is correct!
  • Do Not Let Your Account Be Turned Over For Collections! Did I mention that already?

Hope in some way this has been helpful to you!

Thanks!

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