Even One Injury Can Raise Your Ex Mod

14 Apr

It is becoming increasingly clear in 2013 that recent changes in the California workers’ compensation experience modification process are severely hurting small employers, who have even 1 work injury reported. A single claim can push an employer’s experience mod up by 15 to 25 %, or more. Now that the first $7,000 of each claim are used in the “primary” loss portion of the experience modification, up from just $2,000 in past years, a single work injury can increase future workers’ compensation premiums by 3 to 4 times the dollar cost of the claim, according to UC Berkeley researcher Frank Neuhasuer and others.
And experience mods being reported in 2013 are showing this impact. The increases are so high that the Workers’ Compensation Insurance Rating Bureau has met recently to consider limiting the impact of one claim. The problem, however, is that many times, what appears to be multiple claims really is just an attorney for an injured worker taking advantage of filing two different claims, one for a “specific’ injury such as an injured shoulder, and a second claim for “cumulative trauma” over the work life of the employee. In truth, these are not two claims, but the lawyer’s effort to magnify injuries to obtain more money for himself and the worker.
Employers, in self-defense, need to consider “post offer pre employment physical exams”, immediate and through accident investigations, and full cooperation with their workers’ compensation claims personnel.

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