presented by curt svalstad, director of risk services iowa municipalities workers’ compensation...
TRANSCRIPT
Managing Workers’ Compensation Costs
Presented by Curt Svalstad, Director of Risk Services
Iowa Municipalities Workers’ Compensation Association
Administered by:www.imwca.org
Questions for considerationDo you have a good working relationship with
your city’s agent?Do you know who your workers’
compensation carrier/company is?Do you know what your experience
modification factor (EMF) is?Do you know how your EMF is derived?
Experience Modification FactorA formula that compares your payroll and
claims by class code and then compares your entity’s experience (the result of the previous comparison) to your expected experience based on that of all other employers in the state.
The resulting modifier adjusts your standard premium higher or lower according to your loss experience.
The modifier for the next coverage year is based on the insured’s loss experience of the last 3 completed years.
EMF IllustrationStandard Premium
Experience Modification Factor
Modified Premium
$50,000 X 1.20 = $60,000
$50,000 X 0.80 = $40,000
Controlling your EMFTwo basic ways:
By preventing injuries/accidents from occurring
By containing claim costs once an injury occurs
Preventing Injuries/AccidentsMake safety a priority – get everyone’s buy-in
Form a Safety Committee Create an accident investigation teamSet safety performance goalsDevelop written safety programs and train
employeesIncorporate a disciplinary policy for unsafe
behaviorCommunicate frequently with employees
about safetyPerform pre-employment, post-job-offer
physicals and background checks
Containing Claim CostsReport claims to your carrier immediately!Implement a designated physician programHave written, detailed job descriptionsImplement a return-to-work programHave accident investigation team complete
their investigation and report to Safety Committee
Stay in contact with the claims examinerStay in contact with the treating physicianStay in contact with the injured employee
What other questions do you
have?Curt Svalstad, Director of Risk Services
[email protected] Iowa Municipalities Workers’ Compensation Association
Administered by:www.imwca.org