Large Deductible Programs Reviewable For Premium Recoveries
Most Large Deductible Programs were ignored by auditors in the employer premium recovery industry for many years.
We often hear from very large companies that they are in a large deductible program and that examining the Workers Comp Audit (by the insurance carrier) is an exercise in futility as there are no premiums that can be recovered.
This is simply not the case. Without going into the intricacies of certain Workers Comp agreements, there are other areas of the Workers Comp policy and audits that can be examined for mistakes and overcharges. As long as an Experience Modification Factor (E-Mod/X-Mod) is promulgated (calculated) and a premium is charged by a carrier, the policy and workers comp audits of large deductible programs can still be analyzed for overcharges.
Many times we have heard employers with large deductible programs say that they “are outside of the Workers Comp rating system.” That is not the case.
The % of recovery may not be as large as on a regular Workers Compensation agreement. The larger premium amounts will usually balance out the smaller %’s of recovery. The bottom line is that unless a company is fully self-insured, there is always a possibility of premium recovery.
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