The NHADA Workers’ Compensation Trust Board of Trustees is pleased to report that they have approved a 2% reduction in rates for 2024. Rates have been reduced eight times in nine years; rates are 20.5% lower than they were in 2003.

The Workers’ Compensation Trust continues to provide its members with the most competitive workers’ compensation rates and the highest possible rebates while remaining actuarially 99% confident that the premium collected will cover the cost of workers’ compensation claims submitted by members.

The rates charged by classification code are one piece of the calculation of premium. The other two are the payroll by classification code and the experience modification factor. The payroll by classification codes is determined annually by the payroll auditors, who began auditing members in January 2024. The experience modification factor brings the member’s own claims experience into the formula for calculating premiums. An experience modification over 1.00 increases the estimated premium, while an experience modification under 1.00 decreases the premium. All members who are experience-rated and have a modification factor under 1.10 receive an 18% discount. Therefore, it is imperative for members to keep their experience modification factors below 1.10. The only way to control experience modification factors is to prevent injuries from occurring and to control the costs associated with claims when they do occur.

Here are some quick tips on controlling claims costs:

• Take your time and hire the right person for the job.
• Follow the appropriate hiring steps, including pre-placement drug testing, reference checks and completion of the Second Injury Fund form. See the NHADA Strategic Hiring Guidelines online at https://www.nhada.com/our-solutions/strategic-hiring-guidelines.
• Follow through with all loss prevention recommendations.
• Keep up with employee training.
• Report all injuries promptly.
• Make sure all employees know they are in a workers’ compensation managed care program.
• Be sure to call the NHADA Nurse Case Manager immediately after an injury for referral to the best network options.
• Stay in touch with your injured employee after an injury occurs.
• Provide light-duty work for injured workers and avoid lost time from work.

Remember that costs associated with medical-only claims are discounted by 70% when the experience modification factor is calculated. The full total incurred costs associated with lost time claims are used for the calculation of the experience modification factor. Therefore, members should do everything possible to return injured employees to work promptly, safely and within their physicians’ restrictions after an injury to avoid lost time from work.

Please contact Marianne Gourgiotis with billing questions or Deborah Handrahan with claims-related questions. They can both be reached at (603) 224-2369.