Employer With Large Deductible In For A Possible Surprise
I received a phone call over the recent holiday from a previous client. The company had switched to a large deductible Workers Comp program a few years ago. I did not recommend the program. I had previously thought there were more viable alternatives.
The reason for the call was they were considering leaving the large deductible environment due to downsizing in the present economy. They were under the impression they would start over with a new 1.0 X-Mod (E-Mod). Their current XMod is 1.32.
They were somewhat shocked to find out their carrier had been reporting an X-Mod to the WCIRB (California’s rating bureau) the whole time they were under the large deductible program. I had actually posted on Large Deductibles and Mods in April, 2010. I wanted to bring up the issue again.
If your company is in a large-deductible or any type of deductible program for your WC coverage, your company is not outside of the Workers Comp system. Your company is still in the same process, only you are charged differently for your claims handling.
As long as your company is paying a premium for coverage and satisfies the minimum standards to receive an Experience Rating, there is an X-Mod for each year your company has been in business. You can check your rating bureau for your Mod or email or use the Contact Us page and we will secure a copy of your current and past Experience Mod Sheets for you.
The Mod calculations are just not for California. The same applies for all states. I am not deriding large deductible programs. I am a little concerned no one explained to them that they will still have an X-mod calculated each year.
I suggest setting up a diary entry to review your company’s E-Mod/X-Mods unless you are self-insured or not large enough to have an E-Mod (X-Mod) tabulated each year.
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