Tag Archives: Experience Modifications

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.

How to Save Money from the 2013 California Workers’ Compensation Reform

2 Apr

The California Legislature passed SB 863 in September of last year, with most of the provisions taking effect January 2013. “Permanent Disability” benefits were increased by 40% at a cost to employers of over $1.2 billion in new or added costs per year. There were a number of other changes, some good for employers, others very technical. One of the most effective tools employers were given to save money to offset the cost increases of the law are “return to work” programs. This means it pays for every injured worker, who is not in the hospital, to be back on the job doing something within the limits of their ability, the day after their injury. It might be better to call this a “stay at work” rather than a “return to work” policy.
California employers can save over $400 million a year in workers’ compensation cost by using this “stay at work” approach. But the savings are even larger in future premiums! When an injured worker is off duty due to a work injury, and he qualifies for “temporary disability benefits” under a workers’ compensation policy, he receives only 2/3rd of his pre-injury wage. BUT, this same temporary disability benefit costs almost all employers 2 times or more the lost wages – because these claim costs are used to set their “experience modification, not for one, but for 3 years in a row!. SO- the employee loses money by being off work and his employer pays more than twice as much as if the worker were to come back – even if the worker was just putting in time.
But of course a good return to work program is much more effective than just wasting an employee’s time. Every company I know has some work that they just have not gotten around to, but need to do “someday”. Such activities are always a place to look for “modified work” within the physical limits of a recovering employee.
If you would like to learn more about the return on investment or economic value of “stay at work” or “return to work” programs, just email me at DonDressler1@hotmail.com

New Resource for California Employers – WCIRB.com Website Launched

23 Feb

The Workers’ Compensation Insurance Rating Bureau has launched a completely redesigned website to provide more in-depth information relevant to employers, insurers and agents, and anyone interested in learning more about the WCIRB and California’s workers’ compensation system. The website has a new online address: http://www.wcirb.com

What’s Available- Visitors to the website will find information and resources specifically tailored to their needs.

• Publications and Filings
Locate and access California manuals and plans, WCIRB Bulletins, regulatory filings and more.
• Research and Analysis
Search for and find current data, reports and analyses about the workers’ compensation system.
• Learning Center
Access online educational tools on a variety of topics including the standard classification system, payroll auditing, experience rating and more.
• About
Learn about the WCIRB Click: http://vimeo.com/60274101 for a video tour.

If you would like to learn about your own company’s experience modification or how to control it, please contact Don Dressler Consulting by our email: DonDressler1@hotmail.com or view our website at http://www.DonDressler.com