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Minimum Experience Mod Premium – Reader’s Question

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Reader’s Question on Minimum Experience Mod Premium

When the J&L article or newsletter readers email a question, I always try to answer the question as soon as possible.  This emailed question concerns Minimum Experience Mod Premium – referred to as subject premium eligibility amounts (NCCI) or experience rating eligibility thresholds (WCIRB).

My spouse and I started a business in 2020.  We are still considered a very small jewelry designer and retailer. We pay approximately $4,000 in workers comp premium per year.  Why do we not receive one of those Experience Modification Factors that you discuss very often on your website?  Will having one cost us more money? Thanks.

First – Congrats on starting a business during a very tough time for entrepreneurs and small businesses.  You have made it three years!   You sent your email from a Gmail address and did not identify the state, so let us cover as much ground as possible with my answer.  If you are not in one of the following states, email me back and I will find out for you. I also added the California minimum premium amounts later in this article.

The rules become more complicated once you reach the amount in Column A for the premium paid during your policy year.  Let us keep it simple.  The official name is subject premium eligibility amounts. I call it minimum experience mod premium.

Your insurance agent will likely add it to your policy quote when you qualify for an Experience Mod.   Almost all workers comp insurance carriers are very adept at tracking your minimum experience mod premium levels. Please remember that just because you reach the Column A figure or in the California chart below, it does not guarantee that you will be rated.

State Table of Subject Premium Eligibility Amounts

StateRating Effective DateColumn A ($)Column B ($)
AK7/1/23 and after6,0003,000
7/1/22–6/30/235,5002,750
7/1/21–6/30/225,5002,750
AL9/1/23 and after12,5006,250
9/1/22–8/31/2311,5005,750
9/1/21–8/31/2211,0005,500
AR1/1/23 and after9,5004,750
1/1/22–12/31/229,0004,500
1/1/21–12/31/219,0004,500
AZ7/1/23 and after7,5003,750
7/1/22–6/30/237,0003,500
7/1/21–6/30/227,0003,500
CO7/1/23 and after10,5005,250
7/1/22–6/30/2310,0005,000
7/1/21–6/30/229,5004,750
CT7/1/23 and after13,5006,750
7/1/22–6/30/2312,5006,250
7/1/21–6/30/2212,0006,000
DC5/1/23 and after9,5004,750
5/1/22–4/30/238,5004,250
5/1/21–4/30/228,0004,000
FL7/1/23 and after13,0006,500
7/1/22–6/30/2312,0006,000
7/1/21–6/30/2211,5005,750
GA9/1/23 and after12,5006,250
9/1/22–8/31/2312,0006,000
9/1/21–8/31/2211,5005,750
HI7/1/23 and after6,5003,250
7/1/22–6/30/236,0003,000
7/1/21–6/30/226,0003,000
IA7/1/23 and after9,5004,750
7/1/22–6/30/239,0004,500
7/1/21–6/30/228,5004,250
ID7/1/23 and after8,0004000
7/1/22–6/30/237,0003,500
7/1/21–6/30/227,0003,500
IL7/1/23 and after12,5006,250
7/1/22–6/30/2312,0006,000
7/1/21–6/30/2211,5005,750
IN7/1/23 and after6,5003,250
7/1/22–6/30/236,0003,000
7/1/21–6/30/225,5002,750
KS7/1/23 and after9,5004,750
7/1/22–6/30/239,0004,500
7/1/21–6/30/228,5004,250
KY7/1/23 and after12,5006,250
7/1/22–6/30/2312,0006,000
7/1/21–6/30/2211,5005,750
LA11/1/23 and after12,0006,000
11/1/22–10/31/2311,0005,500
11/1/21–10/31/2211,0005,500
MD7/1/23 and after13,0006,500
7/1/22–6/30/2311,5005,750
7/1/21–6/30/2211,5005,750
ME10/1/23 and after12,0006,000
10/1/22–9/30/2311,0005,500
10/1/21–9/30/2210,5005,250
MO7/1/23 and after9,0004,500
7/1/22–6/30/238,5004,250
7/1/21–6/30/228,0004,000
MS9/1/23 and after10,5005,250
9/1/22–8/31/2310,0005,000
9/1/21–8/31/2210,0005,000
MT1/1/23 and after10,0005,000
1/1/22–12/31/2210,0005,000
1/1/21–12/31/2110,0005,000
NC4/1/23 and after12,5006,250
4/1/22–3/31/2312,0006,000
NE8/1/23 and after8,0004,000
8/1/22–7/31/237,0003,500
8/1/21–7/31/227,0003,500
NH7/1/23 and after14,5007,250
7/1/22–6/30/2313,5006,750
7/1/21–6/30/2213,0006,500
NM7/1/23 and after11,0005,500
7/1/22–6/30/2310,5005,250
7/1/21–6/30/2210,0005,000
NV9/1/23 and after7,5003,750
9/1/22–8/31/237,0003,500
9/1/21–8/31/227,0003,500
OK7/1/23 and after11,5005,750
7/1/22–6/30/2311,5005,750
7/1/21–6/30/2211,0005,500
OR7/1/23 and after6,5003,250
7/1/22–6/30/236,0003,000
7/1/21–6/30/226,0003,000
RI2/1/23 and after11,5005,750
2/1/22–1/31/2311,5005,750
2/1/21–1/31/2211,0005,500
SC10/1/23 and after11,5005,750
8/1/22–9/30/2310,5005,250
10/1/21–7/31/2210,0005,000
SD1/1/23 and after9,0004,500
1/1/22–12/31/229,0004,500
1/1/21–12/31/218,5004,250
TN9/1/23 and after11,5005,750
9/1/22–8/31/2310,5005,250
9/1/21–8/31/2210,5005,250
UT7/1/23 and after9,5004,750
7/1/22–6/30/238,5004,250
7/1/21–6/30/228,0004,000
VA10/1/23 and after9,0004,500
10/1/22–9/30/238,0004,000
10/1/21–9/30/228,0004,000
VT10/1/23 and after10,5005,250
10/1/22–9/30/239,5004,750
10/1/21–9/30/229,0004,500
WV5/1/23 and after11,0005,500
5/1/22–4/30/2310,5005,250
5/1/21–4/30/2210,5005,250

Experience Modification Rating – Money Saver?

I would not look at the E-Mod rating as a money saver.  The true money saver has been and always will be even though you are a small business, you need to have a safety program in place.  Your company does not have the minimum experience mod premium, but even one small claim can cost you dearly.

Related: Experience Mod Predictions Accurate?

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Experience Mod Predictions Accurate?

Experience Mod Predictions – Accuracy Depends on Who/Whom You Ask Most Experience Mod predictions can be a tedious process that has cofounded most people working

James J Moore - Workers Comp Expert

James Moore

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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