Settlements sometimes stall because the injured person is concerned that a future surgery will be required, even though the payer believes that it will not be necessary. This impasse can cause claims that would otherwise settle to remain open indefinitely, creating a headache for the adjuster managing the claim.
As a recognized and trusted provider of settlement tools for over 15 years, Medivest has introduced a solution to break these types of stalemates — a settlement escrow account.
What Is the Settlement Solution Escrow Account?
Escrow is the legal practice of entrusting funds to a third party for temporary custody until a specific triggering event occurs. Its primary use is to set aside money to ensure it’s available for payment when necessary.
Many attorneys select a neutral company like Medivest as their third party custodian in a liability or Workers’ Compensation settlement. Our Settlement Solution Escrow Account provides a means for both parties to escrow funds for a possible future medical expense with Medivest for a predetermined period.
Under this account, Medivest takes and holds an agreed upon amount intended to pay for a potential, but not certain, future need. This amount comes from an analysis of the costs associated with the possible future treatment, known as a medical cost projection report.
The parties to the settlement may also set an “expiration date” on the arrangement — if the need doesn’t occur within the specified time frame, Medivest returns the money to the payer per the agreement.
Our Settlement Solution Escrow Accounts are ideal for jump-starting stalled negotiations. They provide injured parties with peace of mind and prevent liable parties from paying for care upfront that may not ever be necessary — thus alleviating concerns and facilitating a settlement.