Pub. 6 2024 Issue 2

Rebate Checks Are Coming Soon

This year, the board has approved a rebate of $3.2 million dollars!

On May 15, 2024, NHADA is hosting our Unlocking Connections Business Conference and Partner Expo at the Grappone Center in Concord, NH. In addition to a day of innovation, collaboration and growth, we will be distributing the Workers Compensation Trust rebate checks. Please remember to pre-register so that we will have your rebate check ready for you during the post-meeting cocktail hour.

We recognize how important rebates are to our members. Members must continually focus on proven loss prevention and claims management practices to reduce claims costs and increase rebates. It is shortsighted to stop adhering to these basic principles to save money on a daily basis. Failure to adhere to these principles will create increased claims costs, resulting in increased premiums and decreased rebates. The following are proven best practices to achieve the highest rebate possible:

  • Provide a safe workplace.
  • Have regular Safety Committee meetings.
  • Implement Safety Committee recommendations.
  • Train new hires focusing on safety. Utilize the NHADA platform LearnUpon.
  • Inform new hires about Workers’ Compensation Managed Care.
  • Document new hires’ pre-existing condition(s) on the Second Injury Fund form.
  • Take your time during the hiring process to hire the best person for the job, and be sure to train all new hires before they begin work.
  • Perform pre-placement drug testing and do not hire applicants who fail the test.
  • Do not allow new hires to work until the drug test is back.
  • Call NHADA immediately after an injury occurs to obtain assistance from the nurse case manager with a comp mc (managed care) network referral.
  • Promptly file the Employer’s First Report of Injury. The first report is now available on our website to submit to us electronically. There is no need to send it to the NH Department of Labor as we upload the claims information to them.
  • Communicate any concerns you or your staff have about the claim.
  • Provide temporary alternate duty.

Temporary alternate duty remains the single most effective way to control Workers’ Compensation claims costs. Please remember that medical-only claims are discounted by 70% when the experience modification factor is calculated.

In December, the claims staff reviewed all open claims to ensure that the reserves on those claims were as accurate as possible. The total incurred costs on all claims effective Decemeber 31 will be used to calculate the rebate. In February, the actuary for the NHADA Workers’ Compensation Trust reviewed claims data to determine the amount of money available to return to WCT Members in the form of a rebate. Then, the NHADA WCT Board of Trustees reviewed the actuarial analysis and voted on the rebate amount on March 6, 2024.

Administrative expenses and total incurred claims costs are subtracted from the total available premium to determine the available balance. The available balance by member is determined in the same manner and is then multiplied by the individual member’s pro rata share of the total eligible balance and previous returned rebates are deducted, yielding the current balance per individual member. The individual member’s rebate is based on the performance of the Trust for the years of return and, more importantly, the individual member’s performance for the same years. The return of premium for a particular Fund year will be paid out over the course of several subsequent years.

This year’s rebate will include money from the fund years from 2019 through 2022, with the vast majority of the return coming from the 2021 and 2022 fund years. As money from previous years is distributed, there is less money available to return. The 2023 fund year’s claims are still developing, so no money will be returned from that fund year. Members must have a positive fund balance for any given year to be entitled to a rebate for that fund year. For instance, if a member pays a premium of $10,000 and has a compensable claim with total incurred costs in excess of $10,000, the member would not have a positive balance and would not be entitled to a rebate for that fund year. The member would still be eligible for returns from the other fund years with a positive balance. If the claims department is able to recover payments through either subrogation or second injury fund on a claim, that money is returned to the member’s fund account for the fund year of the date of injury. If that recovery results in a positive balance for that fund year, the money will be returned to the member as part of a future rebate. Subrogation and Second Injury Fund recoveries take years to receive, but ultimately, the money is returned to the member’s claims account. If the return does not result in a positive balance for the members, it still improves the overall balance of the fund by reducing the amount that the fund as a whole has to cover for an individual member who has a bad year.

Rebates will be reduced by any outstanding premium due to the WCT. In addition, rebates will be reduced by any balance owed to NHADA affiliate groups at the time the rebate is distributed.

Please allow the NHADA Workers’ Compensation Trust claims staff to assist you with your claims issues. Contact us at (603) 224-2369 when a claim arises, and we will successfully manage it together to control costs and increase your rebate.

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