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Large Deductible Program X-Mod (EMod) Surprise For Employers

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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.

Picture Graphic Of Diagram With Calculator and Pen Large Deductible Surprise For Employer
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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. 

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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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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt 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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