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With these significant rate decreases, it’s important to note the potential impact to an organization’s experience modification factor. Individual class code rates are applied to the denominator portion of the experience modification formula and, depending on the size of the organization, as work comp rates decrease, the experience modification factor may subsequently increase. Nevertheless, the impact of the decreased rates generally offset any increase to the experience mod.
Moreover, the WCRB recently approved changes to the experience rating modification methodology, decreasing the per claim accident limitation from $268,500 to $160,000. To balance the formula, the primary/excess split point increased from $18,500 to $20,500. Those lost-time claims will be less sensitive to severe, outlier claims, putting more weight on claim frequency.
Telehealth continues to be an advantageous approach for employers to give employees proficient treatment. Benefits of telehealth for work related injuries include: reduced interruptions for employee and less time away from work, support for first-aid and immediate treatment and, when necessary, assistance getting employees to the most appropriate medical provider.
With the continued challenges in the labor market (including retention/recruitment and increased competition for skilled labor) coupled with increases in mental health diagnosis, focus on the total well-being of employee remains an important measure. Integrating your workers compensation program with other workplace benefits, such as a robust employer assistance program (EAP) as part of the workers’ comp process, can lead to a better employee experience post-incident/injury. Each organization’s approach may be different, driven by their social determinants of health, which can in-turn strengthen employee satisfaction.
If any questions or if you’d like to discuss the impact to your workers’ compensation program and risk management needs further, please contact Sara Kekula at sara.kekula@m3ins.com.
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