Archives for August 2015

Mod Increases To Over 1.0 – Five Bad Things Can Happen

August 27, 2015 By JL Risk Management Consultants

Bad Developments With Mod Increases To Over 1.0

When a company’s Mod increases to over 1.0, it can rarely have no other effect to a budget other than paying more for WC coverage.

Dollars with Red Arrow Mod Increases Graphic

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Please note that the term Mod also can mean E-Mod (EMod), X-Mod (XMod), EMR, Ex-Mod, Experience Modification Factor, etc.

There are actually more than five concerns with a Mod that crosses the neutral line. A neutral Mod is 1.0.

The five main budget developments – (cash) are:

Certain carriers in certain markets may not underwrite coverage for companies with a greater than 1.0 Mod. In other words, you may have to change carriers to a possibly more expensive choice.
Governmental entities and some private companies will not use subcontractors with a Mod of 1.0 or greater. Some have dropped this to .9 in certain markets. This is a way to lose a large chunk of business very quickly. I have one on my desk with this situation as I write this article.
Mods are trend-based which means your Mod has some factor that will likely be tabbed your Mod for at least the next two years. Rarely does a Mod spike for just one year. The time to act is now when the Mod increases to over 1.0 .
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The obvious budget buster is your company or organization will pay more for your coverage than your safer competitors. The Mod is a direct multiplier. Look at your last policy and premium audit from last year.
Your company may have to move funds away from other areas and increase your safety and risk management program budget to turn the tide. Presenting this budget shift to a Board or C-level managers can be a tough sell.

There are actually more than five. These are the ones that we have seen recently when being called in to assist clients with their Mod.

Feel free to use the search box in the top right hand corner of the blog for more information on Mods.

©J&L Risk Management Inc Copyright Notice

A.M. Best TV – New Releases Three Times Per Week

August 26, 2015 By JL Risk Management Consultants

AM Best TV – A Great Concept – Check It Out

The new AM Best TV is a source that will provide interesting coverage of a large spectrum of insurance topics.

Picture of Businesswoman in Front of A.M. Best TV While Working on Her Laptop

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Lately, it seems many providers are providing TV-like programming for the insurance industry. One that I signed up for recently is AM Best TV.

I will add to this article as they provide me with programming. You can also sign up here if you would like.

The Workers Comp – TV show which starred Morgan Fairchild did not make it to publication. Well, at least this will kind of fill that void.

You can sign up here for this great new service if you cannot wait for an article update. This will be worth your time.

For instance, this week is a show on NAIC (National Association of Insurance Commissioners). It is not exciting programming, but there are some great points brought out during the NAIC meeting.

A.M. Best also provides a number of services- the main one being insurance company reviews and ratings. The ratings are something that any employer should look into before renewing their WC or any policy.

AM Best TV is a trademark of AM Best Inc. All rights are reserved.

©J&L Risk Management Inc Copyright Notice

Work Comp Apps On iTunes – Only Two?

August 21, 2015 By JL Risk Management Consultants

Work Comp Apps On iTunes – Two Will Not Do

The Work Comp Apps on iTunes were actually astounding. I had thought the Android – Google Store was bereft of apps until I visited the iTunes store.

Picture of Work Comp Apps On iTunes Gadget

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After browsing the store for 30 minutes, I came to the conclusion there were only two iTunes apps. These two were also found in the Google Store.

I decided earlier this week to browse for Work Comp apps on iTunes after receiving two emails from readers in response to my articles on the yearly search for Android apps.

The two emails had the same theme – Android sucks, buy an iPhone. As the only saying goes, one is an outlier, two could be a trend. After taking the advice of the emails, I found only these two Workers Comp apps for iPhones.

One was the NCCI coverage app mentioned last week in the Android apps. The other one was a premium calculator of sorts. The NCCI coverage app was free of charge. The premium calculator costs $29.99.

Wikimedia commons – Apple Inc.

I am hoping that I have made a mistake and not located all the IPhone or Apple Store Apps on WC. If there are more WC apps, please email me so that I can point them out to the blog and newsletter readers.

As I mentioned in earlier posts, even if a company has an app they provide their client, why not place them on the Google or Apple Store listings to receive free advertising?

Producing an app is an easy way for a company to promote itself as being ahead of the tech-curve in WC. I linked to and mentioned NCCI often as they have apps in both stores – free of charge.

Hopefully, when I review the Work Comp apps on ITunes next year, I will have more subject matter.

ITunes and The Apple Store are all trademarks of the Apple Corp.

©J&L Risk Management Inc Copyright Notice

How Does NCCI Calculate Our Mod – Reader Question

August 20, 2015 By JL Risk Management Consultants

How Does NCCI Calculate Mods – 33 Steps

How does NCCI calculate our Mod ? This is a blog/newsletter question that we receive almost weekly.

This reader originally performed a Google search to find us. We love the Google or Loogle (Hot Tub Time Machine).

Picture of Hand Holding Calculator with NCCI Calculate Concept

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The NCCI (National Council on Compensation Insurance) is located in Boca Raton Florida.

NCCI is not the only rating bureau. There are many independent state bureaus – the largest being the WCIRB (California). The formulas are quite similar.

The actual formal word is promulgation instead of calculation. The graphic at the top is not the Mod formula.

There are basically 33+ steps to calculating your E-Mod. I think we can actually break it down to a simple formula instead of an E-Mod (X-Mod) calculation that may cause your head to spin.

The E-Mod formula can be thought of as :

E-Mod = Your Company’s Actual Claims Incurred / Similar Company’s Expected Claims Incurred

The NCCI or your respective rating bureau has many more tweaks in promulgating your E-Mod. Almost all insurance (auto, home, life, etc.) is analyzed using this formula. >>>> Actual Results / Expected Results

Woman Hand Doing NCCI Calculate Expenses

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There are many articles on this blog concerning Mods. I will not repeat them here.

Your company’s classification codes sometimes referred to as work comp codes are how your company is compared to another company in the same state(s) your company conducts business in respectively.

The best way to keep the actual results lower (top part of formula) is to have a full safety program or a safety consultant.

Mods have crept back into the insurance conversations recently. A large % of companies were paying attention to the new healthcare regulations while safety and WC were put on the back burner, so to speak.

I hope that I answered the – How Does The NCCI Calculate Our Mod – question with a simple, straightforward answer.

There are hundreds of techniques to lower your Mod – most of them covered in this blog. Search, find, and print whatever will help your company.

If it is not here, or you cannot find it, call or email me.

©J&L Risk Management Inc Copyright Notice

Will NCCI ARD Elimination Change Premium Audits? – Correction

August 13, 2015 By JL Risk Management Consultants

NCCI ARD Elimination Change Premium Audits

The NCCI ARD elimination has hit the Work Comp blogosphere over the last few days. The ARD (Anniversary Rating Date) is covered in a guide by NCCI.

Pin Marking The Calendar Date NCCI ARD Elimination Graphic

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The Anniversary Rating Date Guide by NCCI covers the subject more than one could ever expect to see on paper or a screen.

NCCI has, in my opinion, correctly decided to eliminate the ARD and instead just use the policy date. Of course, there will have to be many exceptions.

Texas eliminated the ARD in January of this year.

A blog reader emailed in this question – Will The Elimination of The ARD affect the premium audit schedules. We have our yearly premium audit coming up in November.

My answer is – NCCI is just simplifying and eliminating somewhat archaic terms to lessen the confusion of the WC insurance rating process. There should be no difference in any of your policies or premium audit schedules – in almost all cases.

Your premium audits will be scheduled at the usual time as in the past- within one month of policy expiry.

~~The only concern you might have if the ARD and policy date is not the same. NCCI will likely align the two dates in the near future. The policy date will be called the Rating Effective Date.~~

Correction (From NCCI) – The elimination of the ARD has no impact on the rating effective date (RED) used for experience rating purposes.

The bottom line is that, unless you have a unique policy renewal or expiry situation, you will likely see no difference.

©J&L Risk Management Inc Copyright Notice

My Favorite Android App For Work Comp Is Stretch

August 12, 2015 By JL Risk Management Consultants

My Favorite Android App For Work Comp

My favorite Android App for Work Comp is in the Google Store. It is not listed under Workers Compensation in the Store.

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If you wish to find the apps that I recommended which were listed in the Google Store, please read the newsletter or type in Android App in the search box.

The Drugs.com medication guide is the app that I have used the most even though it does not relate directly to Workers Comp. Why is it my favorite Android App for Work Comp ?

I have found one of the most complicated and expensive areas in a large proportion of claims is the cost of prescriptions. The interaction checker on the App is the best one that I have located for apps or desktop/laptop applications.

The App would be indispensable to an injured employee who is taking various medications from possibly different physicians. The interactions checker is stellar.

I have used the interactions checker every time I have been given any type of new medication over the past few years. My favorite website for prescriptions is BidRx.

From Drugs.com – The App has seven main tools:

Wikipedia – Intel Free Press

My Drug List – Add your medications to instantly assemble relevant medical information in a simple, easy to read personalized format. Access in-depth consumer information, FDA alerts, drug interactions, plus food, allergy and medical condition interactions. An invaluable tool for medication management and adherence.

• Complete Drugs A to Z listings – Fast search, accurate suggestion engine and the most comprehensive database of drug information available online.

• Pill Identifier – Identify any meds simply by entering an imprint, shape or color. Database updated daily.

• Interactions Checker – Provides a list of interactions that may occur when different drugs are taken at the same time. Also checks food interactions automatically.

• Q & A – Ask a specific question about your medication. Search on thousands of questions and answers.

• Health Professionals – Quick access to all the tools you know and trust.

• Many more helpful tools. Try the Symptom Checker. Lookup specialized databases for side effects and dosage information. Not quite sure how to spell a drug name? Use the phonetic search.

The main screen is below.

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Work Comp Doctor Will See You Now – In Your Home?

August 11, 2015 By JL Risk Management Consultants

Work Comp Doctor Will See You Now

A work comp doctor that will make house calls may seem to be very old-fashioned. How about if the injured workers or their employers could make the house call appointment from a smartphone?

Update-The Wall Street Journal very recently published a great article on physicians making house calls.

That may seem like a far-fetched idea, except that it is almost a reality. Yes, there is an app for that. An Associated Press article from today says there is now an Uber approach to medicine.

A smartphone app from a company known as Pager and similar companies like Heal and Medicast are now in the market to set up in-home doctor visits for people that do not wish to wait or to travel to a regular physician’s office setting.

The work comp doctor could even see the injured employees at the employer’s location. However, a house call from a work comp doctor would enable the physician to see the background/home life of the patient.

If the same physician or physician’s group also visited the employer and discussed the return to work, this would put the claims process light years ahead of the current model.

Picture of Work Comp Doctor holding smartphone

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Yesterday, I spoke with an investment group concerning technology in WC. However, the only term that I could come up with is – bereft.

One interesting note is one of the co-owners of Pager says the demographic which uses them the most are working mothers from 30 – 45 years old.

Of course, getting health insurers to pay for house calls is a problem. The price for a house call is $250 out-of-pocket. Would WC carriers spring for a more expensive appointment?

A very heavy cost-benefit analysis would have to be undertaken to make sure that a much higher-priced house call would be worth the fee.

Ninety percent of physicians do not make house calls at this time. There is an untapped market there for the medical community. The article did say there was a level of concern by physicians concerning house calls for chronic conditions. Sixty years ago, chronic conditions were treated by house calls.

The work comp doctor visiting the patient may allay some of the hesitation about online doctor visits. Following up an online visit with an in-home visit could be an interesting combination of treatment. Medicast seems to have covered both bases.

CorVel Android App Works Well

August 11, 2015 By JL Risk Management Consultants

CorVel Android App

The CorVel Android app worked well for accessing claim information.

The Sedgwick app was covered last year. Their app was the best of a very thin field in the Google Store. Please note that I did not use the Sedgwick app again (viaOne Express) as it is unchanged from last year.

Many companies may have Android Apps available. The only apps covered in articles over the last few weeks were from the Google Store.

The CorVel app (My Care) allows the user, who I would think is the injured employee, to access their claims information including payments. This is an excellent idea to avoid having the adjusters look up payment data.

There are five areas to access on the home screen (see below):

The one area which would seem to be the most necessary would be the My Payments portion of the app along with the My Contacts menus. The other screens can be found by following the link to the app from the above fourth paragraph.

The Payment Verification Screen covers the payment specifics very well.

graphic of CorVel Android App Payment Details

I have used CorVel’s claims system including an App Demo not too long ago. Their claims system and apps all worked very well.

The CorVel android app, in my opinion, leads the pack in the area of claims access. CorVel also has a First Report of Injury app that I did not review.

Hopefully, in the near future, more of the Third Party Administrators and carriers will be providing apps. The apps not only allow the many different parties to a claim easy access.

App growth would also indicate that an industry bereft in tech may be catching up to the rest of insurance marketplace.

CorVel (r) and Sedgwick(r) and their apps are registered trademarks of their respective companies.

Mod Android App – EMC Smart Mod

August 6, 2015 By JL Risk Management Consultants

Mod Android App

A good Mod Android App keeps the calculation simple and straightforward. Smart Mod ™ from EMC (Employers Mutual Casualty) is a one of a kind Experience Mod Android App.

I found no other apps that tried to take on the E-Mod or X-Mod calculations. The app required no logons or passwords to access the calculator.

The following first screen shows the inputs required to calculate a Mod. The second screen shows the results.

If you are an EMC agent, you can actually download all the Mod information directly into the calculation.

What I liked about this App was:

You do not have to be an EMC client or agent to use the app
The app covers all states (NCCI and non-NCCI)
The results screen (see second screen) lets you see what happens if you have better or worse results in 10% increments.
There is an option to see general recommendations from EMC on how to reduce your Mod.

The one limitation to the calculator is that you cannot input your complete specific information from the Mod sheets. However, the app may be providing you a favor. Inputting all the numbers from your Mod sheets into a smart phone could be very tedious. The EMC Mod Android app can still be useful for your general knowledge of Mods.

Android Work Comp Apps – 3 More Reviews

August 5, 2015 By JL Risk Management Consultants

Android Work Comp Apps – Three Reviewed – All Good

The Android Work Comp Apps (Apps) that I downloaded last week showed just how few companies are or were providing Google Play store apps.

These app reviews may seem very short. That is not a bad thing as complicated apps tend to have more errors in them.

The Android Work Comp Apps in this, prior, and future articles are all free of charge. The screenshots will not forward to the apps themselves.

You will need to click on the active links below. Text links are much more reliable than picture links.

NCCI’s coverage verification app was one of the simpler Android Work Comp apps. The app required no logins or passwords and worked well. Please note that NCCI does not provide a coverage verification app since 2019.

Last year, Sedgwick provided one of the better WC apps.

Nova Medical Centers and Advantage Healthcare Systems both provided apps to locate their WC medical centers. The Advantage Healthcare System app also provided in-depth information in a resources section.

Screen Of Android Work Comp Apps Resources

The nearest Advantage Clinic to Raleigh was in Texas. The nearest Nova Medical Center was located in Augusta, GA. Both apps did work very well with no crashes. These two apps were obviously apps marketing their services.

MyMatrixx provided an app that required a password. I had reached out to them last week and have not heard back yet. I will review their app once I do receive some type of sign on info from them.

HealtheSytstems had a nice list of medications on their app. The quick-lookup feature of a large list of medications was great and required no username and password. They also had a tool – Ask The Pharmacist-that looks to answer your RX questions. This was a good simple app for medications.

Check back tomorrow for three of my favorite Google Store Apps for Workers Compensation. I will also cover one that did not appear in the search results for WC apps which I have used for years.