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Emod Changes Article – Woops – I made a mistake earlier


Emod Changes – A Correction To One Figure

The Emod Changes articles that  I wrote last week had a slight error. The E-Mod/X-Mod changes that I posted over the last two weeks had an error in them. I rarely ever go back and correct or change a post. This time I thought that I would go ahead and correct it.

Graphic Of Check Mark Emod Changes Icon

The link to the post is in the last paragraph. Unfortunately, the NCCI had the 2014 Primary Loss figure at $13,500. I originally calculated the Primary Loss at 13,000. The correction actually increased the Mod another .01.

If you are not self-insured, I would heavily recommend looking over the two posts on the 2013 and 2014 changes to the E-Mod. The NCCI has decided to build in an increase for the unsafe companies and to reward the safe companies by increasing the Primary Loss and reducing the Excess Loss.

The basic effect is that in a three-year time span the Primary Loss is going to increase from 5,000 to 15,000. The primary losses are basically where workers compensation insurance is charged at the highest rate.

The Excess Losses have a discount factor and figure into the E-mod at a much less severe rate. If your state has its own rating bureau, they are very likely going to follow the same model. I will post in the next few weeks whether or not any of the State Rating Bureaus are going to use the new model.

The NCCI and most other rating bureaus are going to increase the Primary Loss again in 2015 and then build in an inflation factor for 2016 and beyond. It is time to take control of your E-Mod now.  Your company should try to monitor any Emod changes to your rating bureau account.

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One Response

  1. Nice post which The Excess Losses have a discount factor and figure into the E-mod at a much less severe rate. If your state has its own rating bureau, they are very likely going to follow the same model. Thanks a lot for posting this article.


James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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