<h3>Here are few considerations when setting reserves<img class="alignright wp-image-311 size-medium" src="https://manleyandassociates.com/wp-content/uploads/2018/01/Screen-Shot-2018-01-17-at-3.08.01-PM-300x170.png" alt="New Year's Resolution" width="300" height="170" /></h3>
If you're like most Americans, you start the year off with a few resolutions. Exercise more. Get more sleep. Land the job of your dreams. As you make your list, here are a few resolutions to consider when setting reserves. While these concepts might not be new to you, it's always good to start the year with a refresher.
<h3>Resolution #1: Spend some time to get your reserves at the right level</h3>
Reserves should not be under- or over-funded. Under-fund the reserve and you inflate the financial outlook of your client. Under-funded reserves may stay open longer and end up costing more. Adjusters should stay on top of claims with the potential for considerable changes and adjust reserves as soon as new information comes to light.

By contrast, over-funded reserves paint a weaker picture of the financial situation than reality. Over-funding reserves can happen when adjusters pad their reserves "just in case" or increase reserves for medical issues before they are approved. It is crucial for adjusters to shift reserves as needed, but not to overreact.

Setting reserves is a mix of art and science. Savvy adjusters will stay on top of any new information that comes to light and make adjustments as needed.
<h3>Resolution #2: Perfect your timing</h3>
When it comes to setting reserves, the adage "timing is everything" holds true. Some adjusters modify claims periodically for a set amount of time. Periodic adjustments can cause reserve inflation if the alignment isn't warranted. Conversely, adjusters relying on pre-set diaries might miss an opportunity to adapt a reserve. Adjusters should keep a tight watch on claims and alter them as soon as they learn of a change. Adjusters who are unsure of how often to adjust a claim should match diaries to critical milestones like hearing dates.

At its essence, a reserve should reflect the best estimate of the full value of the claim. And the only way to make sure your assessment is on target is to stay on top of it. Easier said than done, we know. Now, let's see if we can make it happen this year along with losing those last 10 pounds.

Manley &amp; Associates is an independent firm of attorneys and certified nurse life care planners serving the workers’ compensation and liability communities nationwide. Our firm assists counsel, insurance carriers, self-insured employers, and third-party administrators in settling workers’ compensation and liability claims while preserving the claimant’s Medicare eligibility.

Need help with a workers' compensation claim?  <a href="https://manleyandassociates.com/contact/">Contact us</a>.

You might also want to read "How to Make Sure Your Medical Cost Projection Is Rock Solid."

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Manley &amp; Associates is an independent firm of attorneys and certified nurse life care planners serving the workers’ compensation and liability communities nationwide. Our firm assists counsel, insurance carriers, self-insured employers, and third-party administrators in settling workers’ compensation and liability claims while preserving the claimant’s Medicare eligibility.