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Earlier this year, BWC announced upcoming enhancements to the MIRA II reserving system.  In summary:

Private employers will begin to see medical-only claims reserved for the first time beginning in July of 2010.  BWC indicated that reserves will be calculated for medical claims with activity during the most recent 180 days.    The reserves will be reflected on the quarterly claim cost report effective quarter ending September 30, 2010.

BWC has indicated that effective July 1, 2010, claims with the last indemnity award of living maintenance or living maintenance wage loss will no longer qualify for a 50% reduction in reserve.  This impacts claims where last activity was participation in a vocational rehabilitation plan. 

BWC will stop suppressing reserves in claims where salary continuation was or is being paid.  Claims with dates of injury after January 1, 2011 will be eligible for both indemnity and medical reserves.  Older claims will be grandfathered and may have the indemnity portion of the reserve suppressed under old stop logic.  However, if medical is ongoing and active, there may be a reserve for the medical portion of the claim.  For further info on this portion of the changes, please refer to Jay Kemo’s blog from 03/02/2010.

We are waiting and watching the BWC claim system in anticipation of being able to see these changes come into effect under BWC on-screen weekly updates.  As of today, there is nothing to report.  We are eager to see just how many medical-only claims are going to be impacted by this enhancement. 

As you are aware, we often look into proactively settling claims in order to eliminate reserves.  Unfortunately, it appears BWC has decided not to release the medical-only reserves until after our official settlement deadline this year.  Therefore, we’re going to be relying on what we see in the BWC weekly on-screen updates in order to identify any potential settlements that need to be negotiated in a swift manner.  As soon as we know anything, be assured, we’ll be in touch!