E-Mods X-Mods Most Critical Now – Let’s Look at Why
Every year, E-Mods X-Mods reach a critical point, and this time is now. Why? E-Mods X-Mods tabulate on a calendar. If you miss the time to make sure that all Total Incurred on a claims loss run contains the correct numbers, you might end up paying much more for your Workers Comp coverage than you realize.
If you are interested in what this article covers, check out this collection of website articles on this very subject.
Definitions and Timing
I added E-Mods and X-Mods as one term. The whole term is Experience Modification Factor. This website contains so many articles on Mods that I will not cover that info now.
The time of the year makes E-Mods X-Mods most critical now. Why? Because even with multiple recommendations to move a policy renewal date, the January 1st – December 31st policy dates still remain the most popular dates.
E-Mods X-Mods Most Critical – The 18-Month Thing
Your company’s Mods are calculated and pegged at 18 months after the policy begins or six months after it expires. So, if a policy is renewed on January 1, 2025, then the E-Mods X-Mods most critical date is July 1st, 2026; better known as the UNIT STAT date.
I always recommend starting 90 days before the UNIT STAT date. You are attempting to push a big boulder up the hill, and it takes time to do it the right way. Performing a claims loss run review and attempting to negotiate outstanding reserves takes some time to accomplish.
Performing Three Steps
The three steps to take now if your policy renewal date is January 1st are:
- Pull a copy of your Claims Loss Run – you should have online access
- Look over every claim that has an open status – do the amounts look right? Are claims open that should be closed? Many other considerations go into a claims loss run analysis
- If you have any questions on #2, contact your claims adjuster by email. Time is running out.
The three steps in your E-Mod X-Mod critical period may end up being a very complicated task. The above list could contain 10 more steps depending on the above three core steps.
Hey, Stupid – We Are Self-Insured, or We Have a Different Policy Renewal Date
OK, so if you are self-Insured, you need to follow the same pattern. An LDF usually ends up being very similar to a Mod. It is OK to call me stupid if it makes you pull a loss run.
Formula for Other Renewal Dates
Your E-Mod X-Mod critical date = 2025 policy expiration date + 180 days.
Latest Time to Start = 2025 policy expiration date + 90 days. This avoids slamming a request to the claims department at the last minute.
The main thing I wanted to cover is TO DO SOMETHING NOW and not wait for you to end up with an E-Mod X-Mod that costs you more than you should be paying in WC premiums.
