The NHADA Workers’ Compensation Trust (WCT) Board of Trustees and staff are very pleased to have returned $3.2 million in the 2018 rebate. Funds from 2014 through 2016 were released, based on the actuarial analysis and WCT board approval to make up the 2018 rebate.
The actuaries’ goal is to release as much money as possible from past years while retaining enough money in reserve to remain in the 99 percent confidence level. Money held in reserve is intended to cover losses both reported and those that have not been reported yet. No money is released from the 2017 fund year as those claims continue to develop. When claims are over one year old, their ultimate cost is more predictable and the actuary has greater confidence in releasing funds for that year.
The 2018 rebate brings the total amount returned to NHADA WCT members, since our inception, to $85.6 million. In addition to returning over 40 percent of premium back to members in rebates, the WCT trustees kept rates flat despite the upward pressure of claims costs, driven by ever-increasing medical expenses.
In 2017, the board voted unanimously again for no increase in rates. Between the stable rates in an otherwise volatile market, and the annual rebate, the NHADA WCT remains a truly cost effective solution to workers’ compensation coverage.
Members must continually keep in mind that their rebate and workers’ compensation premium are directly related to their claims experience. The better a member’s experience, the higher the rebate, and the lower the experience modification factor, translating to lower premiums.
Preventing injuries from occurring continues to be the single most effective way to decrease workers’ compensation costs and increase rebates.
Every member would like more money at rebate time, but it is those members who are attentive to the best possible hiring practices, preventing injuries and managing their claims costs who are the happiest when the checks are delivered. Remember: “Low Claims=Higher Rebate Check”