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Search Results for: xmod

WCIRB XMod Decision Gives Employers COVID Reprieve – Sort Of

WCIRB XMod Decision Includes COVID-related Claims With Three Caveats The WCIRB XMod decision this week should provide employers somewhat of a break for incurring COVID-related claims.   WCIRB is the Workers Compensation Insurance Rating Bureau of California. A question was sent to NCCI (National Council on Compensation Insurance),  as I write

XMod Formula Update – WCIRB Discusses Results With New Webinar

California WCIRB Webinar Discusses XMod Formula Update For 2019 California’s WCIRB presented a great webinar yesterday on the effects of the XMod formula update.  Check out this article I wrote last year for more on the XMod formula update. Please note that the WCIRB has always been more than helpful

XMod Formula Simplified(?) By California’s WCIRB

California’s New XMod Formula Looks Simple – But Is It Really? A new XMod formula was recently introduced by California’s Workers Compensation Rating Bureau (WCIRB).  By the way, why is this important?  As I have often mentioned in my articles, what happens in California may be coming to a Workers

California Xmods = Heavy Penalty For Repetitive Accidents

California Insurance Commissioner Approves 2017 Changes California Xmods also known as Experience Modification Factors calculations are changing drastically in 2017.  A very important term for California employers  in the next few years is the term variable split point. Split points are the amount at which the Total Incurred for a

EMod (XMod) Can I Obtain One Before My Agent Provides It Every Year?

My EMod (XMod) – When Can You Obtain It? How do I obtain my Emod (Experience Modification Factor0?  This question was emailed from a  medium-sized company from Kansas.   We receive this question regarding EMods often from employers that wish to budget for their upcoming Workers Comp policy year.  

California Employer Question On Experience Modification Factor (XMod)

California Employer Question A California employer emailed in this question last weekend.  “We are a medium-sized employer (dry cleaner) in central California.   Our Experience Modification Factor increased significantly over the last few years.  The increase seems to have resulted in our Workers Comp premiums rising  significantly.   What is

Auditing Workers Comp EMods or XMods – Worth Your Time?

Auditing Workers Comp EMods or XMods – Tricky Stuff By Auditing Workers Comp EMods or XMods, you may find premium savings or you could blow up your program.  Workers Comp E-Mods (X-Mods in CA) can save your company a large amount of premiums if kept in check.   Is trying

Safety Programs – EMods or XMods Take Time To Decrease

EMods or XMods – Safety Programs Have A Cumulative Effect The EMods or XMods safety programs take time to decrease your premiums.  E-Mods also known as X-Mods in California are basically the same as a credit score for an individual.  The main difference is you can fix your personal credit score in

Are California’s WCIRB XMods Changing Like NCCI’s EMod System?

California’s WCIRB XMods  Resemble NCCI E-Mods Now Are California’s WCIRB XMods changing to be more  like NCCI‘s EMod system ? Will X-mods from CA’s WCIRB have a split-point increase similar to the NCCI’s E-mods? I received this question in my email over the weekend.   The changes to the EMod

No XMod On Premium Audit Bill – Reader Question

Reader Question – No XMod On Premium Audit Bill A reader question came in this week concerning the lack of an XMod on the premium audit bill. Xmods or X-Mods are WCIRB’s equivalent of an E-Mod (EMod). The WCIRB is California’s equivalent of the NCCI. The full names of the acronyms

EMods XMods Are Available Earlier Than You Think

EMods XMods Are Available Much Earlier Than At Renewal  The EMods XMods are Available earlier than the policy renewal date. There seems to be a secretive process on EMod publishing dates. Most companies wait until their agent, NCCI, or State Rating Bureau furnishes a copy. Quite often, the E-Mods (X-Mods

XMods EMods EMR and Credit Scores – Differences

Credit Scores And XMods EMods EMR In my last post, I covered the similarities between XMods EMods EMR and credit scores. This post is about the differences. Some of the differences can be painful. I covered some of the differences in this article. Differences One of the main differences between the

EMod XMod Changes Coming Soon – Very Important

EMod XMod Changes Upcoming Will Change Premium Audits WC EMod XMod changes upcoming  may cause a new type of review. As I had posted a few months ago, the NCCI(R) has invented a new way to promulgate (calculate) Experience Modification Factors (E-Mod/X-Mod). I just received notice that the rating bureau

Field Case Managers – Workers Comp Claims Closed Faster and Happier

Field Case Managers – Injured Employees Happier and Claims Closed Faster This is National Nurses Day.  In celebration of the day, I wanted to bring up a subject that I have seen overlooked in quite a few Workers Comp files – Field Case Managers.  If you want to see nurses

First Report of Injury Coding Goes From Important To Critical

First Report of Injury Coding Now Even More Critical Than Before The First Report of Injury Coding now becomes something to watch for in the next five years.  Well, you should have been watching the coding before now if you had online access to your claims.   Why was a

24 Hour Workers Comp and Health Insurance Policy – Rearview Mirror?

24 hour Workers Comp and Health Insurance Policy Fades Away In 2006, the buzzword (flavor) of the year pointed out that a 24 hour Workers Comp and Health Insurance policy answered the round-the-clock coverage concerns. The California Carpenters Union/Association initiated a carve-out program that looked attractive.  That concept quickly progressed

Workers’ Comp Recession Advice Even As Current Data Says Otherwise

Workers’ Comp Recession Advice – Just In Case Any Workers’ Comp recession advice may give the impression that one is just over the horizon.   The drone attacks on Saudi Arabian oil supplies generated a large amount of press over the last few days.  Oil price spikes usually do not cause,

Workers Compensation Numbers Employers Must Have At Their Fingertips

Keep These Workers Compensation Numbers Close For Quick Access The first two main workers compensation numbers involve knowing where your worker’s compensation program is currently. If you do not know where you are, the task of knowing what to do to improve your numbers becomes extremely difficult.  Use Your CompCompass(c). 

Workers Comp Payroll Figures Affect More Than Just The Premium Audit

Workers Comp Payroll Records Hang Around For Four Years+ A company’s workers comp payroll records are vital to the premium audit process.   Assessing a company’s payroll records is one of the auditor’s main job functions. So your premium auditor has combed through your company books .  The auditor has generated

Stabilizing Value – Work Comp EMod Formula Magical Employer Lifesaver

Stabilizing Value – Rating Bureaus Provide a Break of Sorts The Stabilizing Value in Workers Compensation Rating Bureau Experience Modification Factor Worksheets saves companies premiums every day.   How does this boring-sounding number help employers save premium dollars? I am using the numbers from an EMod sheet that I have been

Workers Compensation Reserves Reduction Alternative Mini Guide

Workers Compensation Reserves – Lowering Them Can Be Difficult  The Workers Compensation reserves on a file naturally generate controversy.    Why is there so much discussion on them?   How can you have a great conversation with your claims adjusters?    A workers compensation claims adjuster’s daily activities include 12 more

Workers Comp Documents Top Six Best Read on Paper – With Bonus

Workers Comp Documents – Paper Is Best In These Instances  Many Workers Comp documents can be left as PDFs in a computer file.   Some documents read better on paper.   This article came about due to the article from two weeks ago on paper files in the age of the small

California WCIRB First Aid Claim Requirements – Good and Bad

California WCIRB Issues Mandate on Filing First Aid Claims  The California WCIRB is the workers compensation insurance rating bureau for specifically the Golden State.   The WCIRB produces notices of rule changes that will affect California employers.    One that I wanted to call attention to (even though it was

Workers Comp Assigned Risk Pool – Wait Our Company Mod Is 80

Workers Comp Assigned Risk Pool For Safe Companies? This workers comp Assigned Risk Pool question is usually from an employer that is totally exasperated at the work comp system.  How does such a safe company end up in the workers comp assigned risk pool? The Assigned Risk Pool is unfortunately

Work Comp Wellness Plans – Should Industry Follow Feds?

Work Comp Wellness Plans – Should Employers Receive An Incentive? Should Work Comp wellness plans mimic the recent Obama Administration action on health wellness plans? Recently, the Obama Administration had issued a rule that employees can receive up to a 30% incentive of the lowest priced healthcare policy issued by

California Medical Review and Dispute – Blogging WCRI Conference

California Medical Review and Dispute Blogging Live WCRI Conference California Medical review and dispute is a white hot topic amongst risk managers presently.  One of the hot sub-topics now is the amount of money charged for UR (Utilization Review) in California. In our claims loss run analyses, we find that

Workers Comp Resolutions – Updated For 2016 and Beyond

Workers Comp Resolutions – 2016 Version My recommended workers comp resolutions for 2013 were updated in 2014.  For some reason,  I did not update any workers comp resolutions in 2015. The updated resolutions from the 2014 article were:  Having online claims access is the best and up-to-date way to track

WCIRB WCAN WCRI = Confusion on California WC Statistics

Confusion on California WC Statistics WCIRB WCAN WCRI  – Three trusted statistical providers that now have me confused on whether or not SB 863 actually had an effect on California’s Workers Comp system. Acronyms – WCIRB  – Workers Compensation Insurance Rating Bureau – The Rating Bureau for California’s WC system

E-Mods LDFs Are Like Credit Scores From Hell NCPRIMA

E-Mods LDFs Are Like Credit Scores Are E-Mods LDFs  like credit scores from hell?  Over the past few months, I have presented this material at various conferences.   I thought I would attach the PowerPoint that I used at the NCPrima Conference last week. E-Mods and LDFs_NCPRIMA_presentation 2015 I have received

Mod Increases To Over 1.0 – Five Bad Things Can Happen

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

E-Mod X-Mod Reduction – #1 Question We Receive

E-Mod X-Mod Reduction Is A Very Popular Question E-Mod X-Mod reduction is by far the most popular question we receive from phone calls, emails, and in-person at conferences. How do we reduce our E-Mod today or something along those lines is usually the question.  There is no method for E-Mod

Claim Costs Effect on WC Insurance Rates – Great Graph

Claim Costs Effect on Rates Direct and Delayed The claim costs effect has a direct but delayed relationship on insurance rates. California’s Workers Comp Action Network (WCAN) has produced a few great infographics over the last few weeks.  The infographic shows how claim costs affect insurance rates.   As posted

California’s Rating Bureau (WCIRB) Great E-Mod X-Mod Explanation

California’s Rating Bureau (WCIRB) The WCRIB – California’s Workers Compensation Rating Bureau (similar to NCCI) has written quite a few great plain-language documents on explaining how X-Mods (E-Mods, EMR’s, Mods,etc.)  affect employers.  One of those can be found by clicking here. Their X-Mod formula is slightly different from most of

Scariest Claims of All – IBNR Can Be Frightening – Happy Halloween

IBNR Can Be Frightening To All Parties  IBNR (Incurred But Not Reported) can be one of the most frightening aspects of the Workers Compensation system as a whole.  I often hear the term bandied about in WC “techie talk” conversations.  All parties in the WC system need to be aware

E-Mods X-Mods Government Cracks Down on Higher Risk Companies

E-Mods X-Mods of 1.0 Needed To Bid On Government Contracts E-Mods X-Mods risk concerns have caused many governmental units to now require a Mod at a certain level as a minimum requirement to do business with them.   One of the main calls and emails that we have received over

Experience Modification Factor (E-Mod/X-Mod) Question

The Experience Modification Factor Basics A great Experience Modification Factor Factor email came in last week.. Our E-Mod has changed a large number of times over the last year.  Why does our E-Mod keep changing?  How many times can an E-Mod change in a policy year?  I actually paraphrased the

E-Mods and X-Mods Affected By Lack of Technology

Lack Of Technology – E-Mods and X-Mods All E-Mods and X-Mods are affected directly by technology. In my last post, one of the statistics that jumped off the page caused me to write this blog separately as there is a study that finally relates the lack of technology by Workers

Who Is The WCIRB And What Do They Regulate?

Who Is The WCIRB ? What do they regulate and who is the WCIRB ? I received this question on the WCIRB last night from a California employer that had grown large enough to receive an X-Mod.  Congratulations on your company’s growth in a tough economy.  Sometimes, it is best

Large Loss Caps – How Do They Affect E-Mods (X-Mods)?

The Large Loss Caps Effect On Premiums Capping the large losses incurred by an employer is one way for a State Rating Bureau or NCCI to help control  Workers Comp costs.  Large loss caps function as a stop gap measure to keep one claim from completely harming an employer’s EMod

What Is An Acceptable E-Mod (X-Mod) For My Company?

An Acceptable E-Mod (X-Mod) Usually 1.0 The question is what is an Acceptable E-Mod (X-Mod). The level of questions on XMods/EMods usually increases this time of year. The largest percentage of policies renew on January 1. The rating bureaus such as NCCI usually begin to promulgate and report the E-Mods

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

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

Bid On Contracts With High X-Mod But To Smaller Market

Difficult to Bid On Contracts With A High X-Mod Should we still bid on contracts with a  high X-Mod?   I received this question two weeks ago and wanted to answer it. The rest of the question is – How do we reduce our X-Mod very quickly? We receive a large

Payroll Audit and a Premium Audit – What Is The Difference?

Payroll Audit and A Premium Audit – Differences (Not) Is a Payroll Audit and  a Premium Audit different?  I usually receive this question approximately once per month by email. I thought I would address the differences between a payroll and premium audit. Actually, there are no differences between the two

Workers Compensation Safety Programs – Are They Really Worth It?

Workers Compensation Safety Programs – Best Way To Save $$$ Workers Compensation safety programs are always worth the expended funds.   One of the areas that employers seem to sharply decrease their budgets during economic downturns is safety. As Treasurer of the NC Mid State Safety Council, I can attest

Self Insurance – Forgotten Area For Medical Networks

Self Insurance And Medical Networks Last week, I covered the advantages of Workers Comp self insurance over regular insurance. Today, I wanted to cover an area that is often ignored when setting up a self insurance program. That is the area of medical networks.  Are you going to turn over

What Is The Jones Act In Workers Compensation?

Jones Act – Workers Comp Concern The Jones Act, or Merchant Marine Act of 1920, was passed due to concerns about the legal protection of the Merchant Marine. Prior to the Jones Act, sailors who were injured on the job had few options for receiving damages. Now, injured seamen can

Is Loss Development Factor LDF Calculation Really Worth It?

Term Of The Day – Loss Development Factor The Loss Development Factor also is known as LDF is an element used to adjust losses to reflect the Incurred But Not Reported losses (IBNR) under the retrospective method of rating. Where I have seen LDF’s used the most are for Workers

What Is An Experience Modification Factor in Workers Compensation?

Experience Modification Factor E-ModCan Be Debit, Credit or Neutral There has been much discussion in the last week on the Experience Modification Factor  (E-Mod or X-Mods). My definition is your company’s Workers Comp credit score. From NCCI – Experience modifier (mod) is a multiplier applied to the premium of a

Experience Modification Factor (EMod/X-Mod) Credit Score From Hell

Experience Modification Factor (EMod/X-Mod) Is Like A Credit Score The Experience Modification Factor can be thought of as a credit score. There have been many articles written recently on the upcoming credit law changes effective February 22nd. The articles made me think which is the hardest to improve or correct

Workers Comp Renewal – Five Ways To Harm Your Insurance Program

A Workers Comp Renewal On January 1 Is A Crowded Road A Workers Comp renewal on January 1 creates five ways (or more) to harm your WC program.  In my many years working for insurance companies and TPA’s, I have found that employers and their agents start to rush everything

Workers Comp E-Mod X-Mod Forecast Errors By Expert

E-Mod X-Mod Forecasting Errors Due To Unit Stat Date  Workers Comp E-Mod X-Mod calculating errors.Recently, I had come across some work from two so called Workers Comp “experts” that had guaranteed the accuracy of their E-Mod/X-Mod predictions for their client employers. I had thought this was interesting and decided to

Being Named As Rebaters – Sign of Success?

Named As Rebaters – J&L Risk Management at ISO Conference J&L was recently named as rebaters at an ISO conference.I had heard many times of the saying “You know that you are successful when bad things are written about you.”  I am not sure of the saying’s source. At a

Workers Compensation Bill Review Charges Can Be Expensive

Insurance Company and TPA Workers Compensation Bill Review Charges Workers Compensation bill review fees  can be exorbitant.  The fees an employer’s TPA or insurance company charge for bill review have always been one of my sore spots when we do reserve and/or claims handling reviews for employers. This is an

What Can We Do To Lower Our E-Mod?

Lower Our E-Mod Or X-Mod How can we lower our E-Mod? This is a question I received from one of the blog readers after I posted the Workers Comp E-Mod or X-Mod Factor formula earlier this week. This will fit well into the post that I was going to do

Experience Mod Equation Looks Complicated – Is it?

The Experience Mod Equation Revealed The Experience Mod equation – does it look complicated? I  have been asked often how the Workers  Compensation E-Mod/X-Mod is calculated.  I am also usually asked why a certain company’s E-Mod increased so dramatically.   The E-Mod individualizes a company’s risk to that company.  

Insurance Carriers Becoming Very Assertive Workers Comp Audits

Workers Comp Insurance Carriers  and Premium Audits One of the major trends that we are seeing right now is that quite a few of the Workers Comp insurance carriers are becoming much more assertive on their Workers Comp audits.  In this economy,  one cannot blame the insurance carriers for trying to

Workers Comp Premiums Can Be Lowered – But It Takes Time

Workers Comp Premiums Quick Fix Takes Patience Your Workers Comp premiums -Immediately lower them for your company. This is probably the question that I am asked most often at presentations, conferences, and meetings.  There is no “quick fix” for your Workers Comp premiums.  Reducing your companies premiums takes at least

More on Recession proofing Your Workers Comp Policies

Workers Comp Recession Proofing – Another Angle The Recession proofing program centers this times on reserves. I have received quite a few emailed comments and questions about the current recession. Quite a few forward-thinking employers have asked about the quickest method or methods to reduce Workers Comp premiums in 2009.

How Do Reserves, Total Incurred, and Paid Affect Your Premiums

The Total Incurred Formula Generates Premium Base The total incurred formula involves three distinct terms.   When I am making a presentation or when I receive email questions about my posts, one of the areas that is often mentioned is the formula on the parts of a Workers Compensation claim.

Experience Modification Factor Mysterious Number

Experience Modification Factor Known By Many Names We have received quite a large number of questions regarding the Workers Comp Experience Modification Factor over the past few weeks. The Experience Modification Factor also goes by Experience Modification Rating, and Experience Modifier. The E-Mod has many acronyms such as: Ex-Mod (California)

Top 10 Workers Comp Questions Received From Employers Agents

Top 10 Workers Comp Questions We Are Asked Most Often The top 10 workers comp questions received by us since we opened for business in 1996 cover many topics.    1. I just had a payroll audit on my Workers Comp. My insurance carrier sent me a huge bill. Do

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