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This is driving me crazy!!!!
I'm a "small agency," have a handful of clients, and a few of my firms do workers' comp defense work. I have a great relationship with my clients. I love working with them, but recently I've not been able to see them as much because they "can't use me" on certain files because the insurance companies on certain files have these "preferred vendor lists." I'm getting nailed by this! It makes me sad. It makes my clients unhappy that they can't call me for their depos also. What the heck can I do? Does anybody know how to GET ON these secret little "vendor lists"?? It just seems like a huge task so I've never taken the time to deal with it. I am getting to the point I may have to find out how to do it though because my business is slowing and slowing because of this! If it is a rate issue, I'm sure my rates are competitive. Can anyone give me advice? Is it something that can be done, get on these lists, being the "small agency" that I am? Any advice is welcome!
Or just a big hug is good too! :)
Karen - these "preferred vendors" as you call them are probably doing nothing more contracting with insurance companies with a low rate for all their work - it's going on all across the U.S. State after State after State has tried to fight this "contracting" - some States already have anti-contracting laws, but they are not enforced, unfortunately. Delaware tried to enforce their anti-contracting law against Gallo Reporting and lost - Supreme Court ruled contracting is LEGAL. So there you go. If it were me, I'd ask my clients to tell me the rates they are paying, then contact the insurance companies YOURSELF and bid on the work in your area.
I'm sure your rates are competitive under normal circumstances - but these agencies that are contracting are not submitting "competitive" bids; they are undercutting to get the volume work, so their rates are probably lower than what you charge.
Rita Carpenter
I'm sure your rates are competitive under normal circumstances - but these agencies that are contracting are not submitting "competitive" bids; they are undercutting to get the volume work, so their rates are probably lower than what you charge.
Nov 4, 2009