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Peter Sheffer, WCT Director Nov 16, 2020 4 min read

WCT Board Reduces Rates For Third Year in a Row

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. Rates over the past six years are as follows:

  • 2021: 5% decrease
  • 2020: 5% decrease
  • 2019: 5% decrease
  • 2018: No change
  • 2017: 4% decrease
  • 2016: 5% decrease

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 is one factor in the calculation of premium, therefore not all Members will see a decrease in premium. The other factors are the payroll by classification code and the experience modification factor. Increases or decreases in payroll directly influence premium. The experience modification factor brings the members own claims experience into the formula for calculating 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 that do occur.

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 worker’s compensation managed care program.
  • Make sure to call the NHADA Nurse Case Manager immediately after an injury for referral to the best network options.
  • Provide light duty work for injured workers and avoid lost time from work.

Remember that cost 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 for the calculation of 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.

Please contact Marianne Gourgiotis with billing questions or Pete Sheffer with claims related questions. The claims team may be reached at 800-852-3372. The NHADA WCT Nurse Case Manager can be reached at msilakka@nhada.com.

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Peter Sheffer, WCT Director

Peter Sheffer earned his Bachelor of Arts degree from the University of New Hampshire in 1984. His claims career began shortly thereafter with a commercial insurance company where he obtained his multi-line claims adjuster license. From 1986 to 2005, Pete worked for a large self insurance pool in New Hampshire, handling workers compensation claims for public sector employers. Starting as a road adjuster, he worked his way up to Claims Manager, a position he held for six years before joining the NH Automobile Dealers Association Workers’ Compensation Trust in 2005.

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