Funds Overview (17.2)

Funds Overview

Use RISKMASTER Funds Management Module to manage claim reserves, payments and collections through the complete claim life cycle. Collections are subrogation or recovery payments associated with a claim after offsetting checks or payments. You can enter a collection without setting up reserves for claims.

To process a payment you have to set up the payment and then issue a check. You can void a payment at any time after you create it. If the voided check was written against the reserves for a claim, RISKMASTER increases the reserves by the amount of the void check.

Reserves are the funds set aside by insurance companies to assure that they can cover future liability. Reserves are also the total unpaid amount of claims reported on a specific accounting date. When you make a payment, RISKMASTER subtracts the payment amount from the reserve balance.

Using the Funds Management module you can set up bank accounts and print and schedule checks. You can set up account records and check stocks for your checking as well as escrow bank accounts and set up multiple check stocks for each bank account. You can also use the bank account reconciliation option to process data from your bank’s electronic statement to balance your bank accounts with data in the RISKMASTER database. Funds management enables you to set up and print checks for claim payments, and also schedule automatic checks for future payments.

The RISKMASTER Funds Management module lets you control invoicing and billing information related to a payment. You can approve transactions for your subordinates who do not have authority to issue checks beyond a certain incurred limit, and print reports of pending payments, issued checks or Explanation of Benefits (EOB).