ESM achieves a 39 point X-Mod reduction for an employer by identifying a carrier error in the claim classification reported to the Workers’ Compensation Insurance Rating Bureau (WCIRB).

ESM was successful in reducing a client’s 2017 Experience Modification by 39 points by requesting a WCIRB reclassification with the corrected claims information from the carrier.

This resulted in returned premium of $36,820 plus reduced Workers' Compensation premium for the current policy year.

2017 Experience Modification published at 293%.  

Here’s what happened next…

June 20: ESM reviewed Bureau X-Mod worksheet and alerted the broker of a potential decrease in Experience Modification based on Joint Coverage claims.

June 22: ESM contacted the carrier alerting them of the incorrect Unit Stat filing status of the Joint Coverage claims and requested that they submit the correction to the WCIRB. The Carrier agreed to submit the correction on 3 claims to reflect Joint Coverage status.

ESM projected the revised Experience Modification Rate to be reduced by 39 points to 254%.

June 29: ESM received the experience modification re-rate published at 274%.  ESM reached out to the Carrier again to question the percentages of Joint Coverage submitted to the WCIRB for these 3 claims. The Carrier agreed to submit another correction to the WCIRB to reflect the agreed upon pro rata share of the Joint Coverage claims.

July 27:  ESM received the revised Experience Modification at 254% confirming our projection.

This is a common error that is easily overlooked in the Experience Modification worksheet.  With the new Experience Modification formula, effective January 1, 2017, the carrier’s incorrect filing of Joint Coverage claims can significantly impact an employer’s X-Mod and their Workers’ Compensation premium. 

Contact us today to assist you with editing your Experience Modification worksheet.