Sedgwick Claims Management Services, a Third-Party Administrator (TPA), and Data Dimensions, a clearinghouse vendor, may have gotten hitched.

Imagine our surprise when we spied a teensy-weensy Sedgwick logo in the upper left corner of the Data Dimensions Help Center. Our petals dropped in shock, and we wondered: Did Sedgwick and Data Dimensions elope in the middle of the night?

Many states mandate workers’ comp claims administrators (also known as ‘payers’ or ‘carriers’) must accept e-bills from providers (e.g., California, Texas, and New York). Except for two claims administrators (CorVel and the Department of Labor), all claims administrators hire a clearinghouse vendor to accept and manage e-bills providers send to them.

These clearinghouse vendors play an essential role in workers’ comp e-billing for insurers, third-party administrators, self-insured employers, and state governments. Most importantly, a clearinghouse vendor maintains and accesses bill and payment data for each claim administrator client.

If the nuptials between Sedgwick and Data Dimensions have in fact taken place, questions arise about the essential business data of all the other (not Sedgwick) claims administrators using Data Dimensions as their clearinghouse vendor. What is their exposure, and what safeguards will be implemented to isolate these other claims administrators’ information from their competitor, Sedgwick?

Below, we show the microscopic Sedgwick logo and list 20 claims administrators who are now presumably stepchildren of this blended family.

Is That a Sedgwick Wedding (or Puny Engagement) Ring?

As a service to our clients, daisyBill manages the instances when clients report that a clearinghouse vendor erroneously processed their e-bills (e.g., e-bills not on file with the claims administrator, incorrect e-bill rejections, and reports of missing documents).

On Wednesday, July 3, 2024, daisyBill navigated to the Data Dimensions Help Desk to report a claims administrator e-billing error. Upon signing into the Service Desk, we noticed a minuscule Sedgwick logo in the upper left corner of the Data Dimensions website page.

On Monday morning, July 8th, daisyBill took a second peek and the itty-bitty Sedgwick logo was still there.

Mysteriously, on Monday afternoon July 8th, when daisyBill took a third peek, the peewee Sedgwick logo had vanished. Engagement called off? Ring too small? Divorced already?

daisyData: Sedgwick’s Many New Stepchildren?

daisyBill’s proprietary technology maintains a comprehensive list of all claims administrators, their designated clearinghouse vendor, and the Payer ID clearinghouse vendor assigned to their claims administrator client. Hence, our clients never need to worry about these e-billing details.

For context on the impact of the possible Sedgwick / Data Dimension union, below is the count of e-bills daisyBill has submitted to each of the four clearinghouse vendors, CorVel, and the Department of Labor since January 1, 2023.

This daisyData shows daisyBill sent Data Dimensions over 1.6 million e-bills, representing a hefty 46% of all e-bills daisyBill sent. These e-bills were for the 180 different claims administrators that use Data Dimensions as their clearinghouse vendor.

daisyBill e-Bill Submission Date: 1/1/2023 - 6/30/2024

Alert: Children Beware

According to S&P Global, Sedgwick is the “leading insurance third-party administrator.” With this potential acquisition, Data Dimensions claims administrator clients would be advised to brush up on their classical mythology and learn from the unfortunate fate of the children of Saturn, Lamia, and Medea. TL;DR: Parent kills off children…

Of the 180 claims administrators that use Data Dimensions as a clearinghouse, below is a list of Data Dimensions’ (Sedgwick’s??????) top 20 claims administrators by volume of the 1.6 million e-bills daisyBill sent Data Dimensions.

Notably, Sedgwick is Data Dimensions’ largest claims administrator client. The table below shows that a whopping 39% of the 1.6 million e-bills daisyBill sent to Data Dimensions were for Sedgwick.

Data Dimensions Top 20 Claims Administrator Clients by e-Bill Count
e-Bill Submission Date: 1/1/2023 - 6/30/2024

Obviously, a Lilliputian Sedgwick logo placed on Data Dimensions’ Help Desk webpage is not conclusive evidence that Sedgwick and Data Dimensions have tied the knot.

However, as a reminder, Lemuel Gulliver’s adventure in Lilliput begins when he is washed ashore after a shipwreck and finds himself bound by innumerable tiny threads and addressed by tiny captors fiercely protective of their kingdom.

daisyBill makes treating injured workers easier, faster, and less costly. Request a free demonstration below.

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