Upcoming Important Date – Pending Unit Stat Date
The pending Unit Stat Date creates a deadline that private and public employers should mark on their calendars.
A large percentage of private employers and most public entities renew on July 1st. In most policies, the Experience Modification Factor, better known as E-Mod or X-mod, is usually calculated six months before policy inception.
This date is known as your Unit Statistical Date or Unit Stat Date.
The Unit Stat date for the aforementioned employers is January 1, 2015.
The Total Incurred figures applicable to your July 1st, 2015 policy will peg on New Years Day, 2015.
I may not necessarily agree with this structure, but it is the system we have to work with to have WC policies. As Charles Givens said in Super Self, “If you want to win in their ballpark, you have to play by their rules.”
Your company or public entity has seven weeks to correct any reserves on your applicable outstanding Workers Comp files. As mentioned often in this blog, Total Incurred = Paid + Outstanding Reserves.
The Total Incurred figure is used as one of the main inputs to your E-Mod calculation. Having online access to your claims and loss runs is critical in this process.
If you have your company’s loss runs and want to begin a loss run analysis, unfortunately there is no one guide on how to accomplish that task. Each WC file is to its own. There is no Step 1, Step 2, Step 3, etc. method.
Calling attention to certain files on your loss runs may actually end up increasing your E-Mod. I have attempted to write a one-size-fits-all loss run analysis guide. I have read a few other guides that fall flat.
The best advice that I can give is to look for the outliers or the claims that are obviously over-reserved or have some other attribute that stands out upon a loss run analysis and review.
The main idea is to at least begin your analysis but tread very lightly. A large % of employers do not even obtain their loss runs and look over them.
If you have to request a paper loss run, you should do that today if your policy renewal is July 1st. In fact, even if it is not on July 1st, the employers that pay attention to their loss runs seem to have lower E-Mods than companies that do nothing with their loss runs.
There are numerous articles on X-Mod or E-Mod reductions and loss run analysis. Use the search box to find them in the 1400 articles on this blog.
Some of the terms in this article are highlighted that will take you to some of the articles. Feel free to print out any of the articles or reference them in your own articles with a backlink.
Go ahead and mark the pending Unit State Date on your calendars if you are a public employer.
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