Employee Salaries | ||||||||
EMPLOYEE ROLE | Salary | Benefits | Total Comp/ | * Load | Total Annual Cost | Daily Cost | Hourly Cost | Min. Cost |
$28,000 | 40% | $39,200 | 20% | $47,040 | $180.92 | $22.62 | $0.38 | |
Support | $30,000 | 40% | $42,000 | 20% | $50,400 | $193.85 | $24.23 | $0.40 |
Specialist | $50,000 | 40% | $70,000 | 20% | $84,000 | $323.08 | $40.38 | $0.67 |
Accounting | $50,000 | 40% | $70,000 | 20% | $84,000 | $323.08 | $40.38 | $0.67 |
* Load = Management Oversight, Lights, Rent Allocation, Cubes, Utilities, etc…… The above Manual Cost Process spreadsheet doesn’t recognize the increased efficiencies in recoveries which is utilized in the part of the business overview chart. | ||||||||
What Does It Currently Cost to Process Subrogation Recovery Checks?
Our SubroPro software solution is designed to benefit you by automating the currently labor-intensive (and costly) task of processing a received subrogation recovery check and reconciling it to the proper claim file… and the appropriate indemnities within each claim.
The following charts is a sample of the steps necessary in a manual process that many companies we’ve polled told us takes place from the time a recovery check arrives via USPS mail to that check being deposited in their bank account. This manual process is costing companies $13.31 per check. The second chart displays the employee salaries of those folks involved in reconciling the subrogation checks. It is the small units of each employees time that goes into the total cost per check, which Recclaim's software solutions can drastically reduce.
The Current Manual Process | ||||||
FUNCTION | Time Allotment (in minutes) | Support | Specialist | Accounting | TOTALS | |
1. Clerk opens mail and determines check destination | 1 min. | $0.38 | $0.38 | |||
2. Send check to subro department | 2 min. | $0.75 | $0.75 | |||
3. Support clerk matches check with claim # and appropriate specialist | 2 min. | $0.81 | $0.81 | |||
4. Check is copied | 0.5 min. | $0.20 | $0.20 | |||
5. Check copies are sorted and given to appropriate specialist | 1.5 min. | $0.61 | $0.57 | |||
6. Specialist researches check payment details | 5 min. | $3.37 | $3.37 | |||
7. Specialist determines deductible to be paid and creates instructions for same | 5 min. | $3.37 | $3.37 | |||
8. Specialist either applies correct value to indemnities or creates exception slip for accounting | 2 min. | $1.35 | $1.35 | |||
9. Support Clerk balances deposit and sends to accounting | 2 min. | $0.81 | $0.81 | |||
10. Accounting staff reviews deposit and balances the transactions | 2 min. | $1.35 | $1.35 | |||
11. Accounting sends the check to the bank. | 0.5 min. | $0.34 | $0.34 | |||
TOTALS | 23.5 min. | $1.13 | $2.38 | $8.08 | $1.68 | $13.31 |
Request a Working Manual Cost Process Spreadsheet
If the steps or figures used in our charts are not reflective of what your company incurs to process subrogation recovery payments, contact us. It's important for you to fully understand and appreciate how implementing the SubroPro solution contributes to your company's bottom line. We want this information to be accurate and trully reflective of the current costs.
Recclaim Software Solutions offers these charts in an Excel spreadsheet, which can be emailed out upon request. You can also request appropriate numbers for your organization (time allotments, salaries for the respective people who perform the functions listed, load costs, etc.) to be edited and sent. Our hope for this type of working document could be used in companies as an exercise to see the costs involved in payment processing.
Once you arrive at your true cost to process subrogation recovery payment checks, compare it to the SubroPro Solution by contacting us directly.
Don’t be surprised by the savings that can be realized with SubroPro. And to think, we didn’t even mention process efficiency benefits… yet.