Department of Administration State Employee Benefit Plan, State of Montana 1984

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The claim payment error rate of 1.5% is higher than that found in the audit of the July 31, 1982 plan year.
Recommendation The error was due to a manual adjustment needed to cor- rect an accident claim which the computer system would not handle correctly. The system has since been changed to handle accident claims correctly. However, we recom- mend that whenever a manual adjustment is necessary for correcting a previously processed claim, that all such adjustments be reviewed by a supervisor.
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...laim Turnaround Time: Our review experience with other claim department systems showed a range of 90% to 95% of the claims being paid within two weeks or less. Only 52% of the claims reviewed were paid within the two weeks. However, only 10% of the claims not paid within two weeks did not have a documented reason to justify the delay .
The average days of turnaround is significantly better than that shown for the plan year ended July 31, 1982.
DENTAL CARE PLAN Error Rate: The fact that no errors were found in our audit of the dental claims indicates very good handling of these claims.


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