Time to start counting your poultry -- State Farm’s workers’ compensation henhouse is now guarded by the third-party administrator (TPA) Sedgwick, effective October 21, 2018. Prior to this change, State Farm managed the administration of its workers’ comp claims.

In all practicality, the transition should be relatively seamless. Although from my experience on the claims side, going from in-house to outsourced claims handling means compromises -- insulated exposure to monetary penalties also means relying on the TPA (Sedgwick) to do the “right” thing and cutting through additional layers of management to ensure accountability if something goes wrong, such as Sedgwick’s reimbursement problems.

While the decision to outsource to Sedgwick is not necessarily surprising, given State Farm’s foremost reputation as a personal lines carrier, this change requires adjustments by providers that treat injured workers.

Providers, going forward, a few facts to keep in mind:

• Claim numbers are not changing, as State Farm will continue assigning its own claim numbers
• From October 21, 2018, onward, all State Farm workers’ comp bills are to be submitted to Sedgwick
• All billing inquiries are directed to Sedgwick at (844) 866-5190, Option 4

If you are a DaisyBiller using our easy-to-use billing software, for all new State Farm claims, simply select Sedgwick as the “claims administrator” and State Farm as the “payer.” The ease and simplicity of properly selecting an administrator and a payer in DaisyBill makes electronic bill submission a breeze.

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