The NHADA Workers’ Compensation Trust board of trustees has approved a 5% reduction in rates for the 2021 fund year. This is the third year in a row that the WCT has reduced rates by 5% – with a zero increase in 2018 and a 4% decrease in 2018, and a 5% decrease in 2016. In 2021 Members will see a reduction in rates by classification code ranging from -4.4% to -6.9%

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

The rates charged by classification code are one factor in calculating premiums; therefore, not all members will see a premium decrease. The other factors are payroll by classification code and the experience modification factor. Increases or decreases in payroll directly influence the premium. The experience modification factor brings the members’ own claims experience into the formula for calculating a premium. 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 control the costs associated with those claims.

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 outlined in the NHADA Strategic Hiring Guidelines, including pre-placement drug testing, reference checks, and completion of the Second Injury Fund form.
• Follow through on all loss prevention recommendations.
• Keep up with employee training.
• Report all injuries promptly.
• Make sure all employees know that they are participants in a workers’ compensation managed care program.
• Make sure to call the NHADA nurse case manager immediately after an injury for a referral to the best network options.
• Provide light-duty work for injured workers and avoid lost time from work.

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