SUBROGATION

Subrogation can often be a difficult component to price when it is made a part of an overall Claims Administration Package. Simply wrapping its cost into the overall program service fee tends to reduce the effectiveness and tenacity of the subrogation effort. It has long been established that granting a percentage of the recovery to the successful Subrogation vendor significantly increases the overall result and, in many cases, can be shown to completely pay for itself out of the resultant higher recoveries.

Typically, this service is farmed out to an outside vendor (much as the fee auditing service is done) usually at a cost of between 25% to 30% of the recovery. Fortunately, one of VANGUARD CLAIMS ADMINISTRATION, INC.’s sister companies is a full service, independent subrogation and recovery vendor. VANGUARD RECOVERY SERVICES offers "bundled" or "unbundled" programs that allow our clients to seamlessly and immediately move a file from the adjusting stage to the recovery stage. VANGUARD RECOVERY SERVICES maintains a highly experienced, in house Subrogation Unit headed by a former collections agent and supported by individuals with many years of recovery expertise. Because of the high level of efficiency and resultant maximization of returns, we highly recommend that Subrogation recovery be left "in house" with our sister company to be handled by our trained personnel. Based on the previous handling that will already have occurred to the Subrogation file, coupled with the procedures and recovery processes utilized by VANGUARD RECOVERY SERVICES, we are able to offer this service at a significantly reduced rate of only 15% of recovery.

This plan holds the benefit of providing both a built in incentive for the highest recovery possible and, at the same time, increasing the amount of recovery on behalf of our clients. It also guarantees that our clients will enjoy the most aggressive Subrogation recovery possible while more quickly recovering the very costs that pay for those efforts.