By now, all NHADA WCT members should have their workers’ compensation rebate checks. “The NHADA WCT Board of Trustees and staff are very pleased to be able to return $3.6 million as the 2021 rebate.” said WTC Board Chairman, Matt Marrazzo. Funds from 2018 and 2019 were released, based on the actuarial analysis and WCT Board approval, to make up the 2021 rebate. The actuaries’ goal is to release as much money as possible from past fund years while retaining enough money in reserve for the WCT to remain in the 99% confidence level. Money held in reserve is intended to cover losses both reported and those that may not yet have been reported. No money is released from the 2020 Fund Year as those claims continue to develop. When claims are over one year old, their ultimate cost is more predictable, and the actuary has greater confidence in releasing funds for that year.
The 2021 rebate brings the total amount returned to NHADA WCT members since our inception to $96 million. In addition to returning over 40% of premiums back to members in the form of rebates, the WCT Board of Trustees has reduced rates five out of the past six years. Between the decreasing rates in an otherwise volatile market and the annual rebate, the NHADA WCT remains a truly cost-effective solution to workers’ compensation coverage.
Members must continually keep in mind that their rebate and workers’ compensation premium are directly related to their claims experience. The better a member’s experience, the higher the rebate, and the lower the experience modification factor, translating to lower premiums.
Preventing injuries from occurring continues to be the single most effective way to decrease workers’ compensation costs and increase rebates. Members who incorporate risk management controls into their business culture including:
- providing regular recommended staff training,
- performing slip and fall prevention,
- having regular safety committee meetings and
- complying with loss prevention recommendations.
- have fewer losses and higher rebates than members who do not.
When injuries do occur, members who:
- immediately contact NHADA post-injury,
- are actively involved in the management of claims,
- maintain contact with the injured employee and
- provide temporary alternate duty work as soon as the employee is released to return
- keep their claims costs to a minimum and enjoy higher rebates than members who are not actively engaged in managing their claims.
Every member would like more money at rebate time, but it is those members who are attentive to the best possible hiring practices, preventing injuries and managing their claims costs who are the happiest when the checks are delivered. “Low Claims = Higher Rebate Check.”