The Experience MOD Factor- Are you confident that yours is correct?
Written by Shannon Nicol MWCA, CWCA, WCCA
Workers’ Compensation Specialist
The majority of my position involves helping our clients in the New England Comp Advisor Program (NECA) manage their workers’ compensation claims. Proper claims management is the key to protecting your experience modification (MOD) rating.
Recent changes in the split-point formula for calculating a MOD rating are forcing businesses to take a closer look at their MOD and be more careful in monitoring open claim reserves. The NECA program was designed to do that for our clients. A business should actively manage their workers’ compensation claims from start to finish. Having a firm grasp on the background of a claim allows a business to make a difference in the open reserves and future action plans of a claim.
It is important to make an impact on claims from the beginning, so it is imperative the information received by NCCI or the state rating bureaus is as accurate as possible. This is what they will use when it is time to publish your MOD. Staying on top of claim changes will help a business better project what a MOD may be, allowing a business to prepare budgets and plan ahead of time for their policy premiums. Once National Council on Compensation Insurance has released the MOD, clients can look for every avenue or opportunity that may be available to lower the MOD. From errors in payroll or claims data there may be several factors artificially inflating the MOD calculation.
There are also several state specific rules that allow additional corrections, resulting in further MOD reductions. A lower MOD means lower premium and we want to make sure that our clients are reaping the rewards with as much savings as possible!
New England Comp Advisors has really made a difference!
Over the past five years, we have found more than 1,000 errors in the MODs of over 100 clients. We have reduced outstanding claim reserves by over 8.5 million dollars. Mod reviews are included for all of our New England Comp Advisor clients. Do you have a qualified agent looking at your MOD? If you are already a client of New England Comp Advisors, you can rest assured that your MOD is under constant review to ensure you the best price for your workers’ compensation premium. Not a New England Comp Advisors (NECA) client?
Click here to find out how you can start saving money on your workers’ compensation policy.