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Join the IMWCA Regional Workshops to learn about IMWCA membership benefits, financial stability, underwriting timeline, budgeting for workers' compensation premium, NCCI data, experience rating, and more.
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IMWCA Membership 370 cities 75 counties 80 political subdivisions 525 Members
Financially Stable • $19 million in written premium • $57 million in fund balance • Five-year loss ratio of 49% • Safety National Reinsured (A+ Rated)
Board • Nine-member Board of Trustees • Five city representatives • Four county representatives • Elected of appointed officials from member entities
You local agent Do you know your local agent?
Underwriting Timeline • Annual Payroll Worksheets - February • Renewal Packets mailed – Mid May • Invoices mailed – late May • Payment plans – pay in full or deposit plus 7 equal installments. • Annual Audits by IPI – July/August • Interchange of Labor
Budgeting for Workers’ Compensation Premium • Determine your city’s estimated payroll, taking into consideration: • Cost-of-living and/or merit pay increases • Staffing changes • Changes in operations • Apply new NCCI rates (ask your agent) • Review Experience modification worksheets and last 4 completed years of claims data valued as of 12/31 (ask your agent).
National Council on Compensation Insurance (NCCI) • Publishes underwriting, data and reference manuals for all participating states • The rate-setting organization for Iowa and 37 other states • Distinguishes between various types of work and creates a class code for each • Collects loss data from employers and sets the rate for each class code • Adjusts rates by class code each year based on historical loss experience
NCCI Data • Used to calculate premium by all workers’ compensation insurance providers in Iowa • Data components in premium calculation: • Payroll (by class code) x Rate (per $100 payroll) x Experience Modification Factor (EMF) x Discounts/Surcharges = Net Premium + Expense Constant = Total Premium • Data components you control to some degree: • Payroll • EMF (determined by your loss experience)
NCCI Experience Rating • A 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 your loss experience of the last 3 completed years.
3 Years for Experience Rating Used to calculate the current EMF Current EMF 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 New July 1 EMF Used to calculate the EMF for next fiscal year
The Experience Modification Factor (EMF) • A multiplier that is applied to the pure premium • A multiplier of 1.00 represents an average risk • A multiplier greater than 1.00 – called a debit mod • A multiplier less than 1.00 – called a credit mod
NCCI Experience Rating Formula • The formula in simple terms: Actual Losses Expected Losses • The final formula in simple terms: Modified Actual Losses Modified Expected Losses
NCCI Experience Rating Formula Actual Formula: Primary Actual Losses + Ballast Value + (Actual Excess Losses X Weighting Value) + (1-Weighting Value) X Expected Excess Losses ___________________________________________________________________________________________________ Primary Expected Losses + Ballast Value + (Expected Excess Losses X Weighting Value) + (1-Weighting Value) X Expected Excess Losses
What’s Changed? • Primary Loss components of the formula: • Medical-only claims – prior to 2012 included at full value, now discounted by 70% • Indemnity claims – the portion of each included as primary loss being increased • 2013 from $5,000 to $10,000 • 2014 from $10,000 to $13,500 • 2015 from $13,500 to $15,000 • 2016 from $15,000 to $16,000 • 2017 from $16,000 to $16,500
Budgeting for Workers’ Compensation Premium • Discount Rating Plan • Longevity Credits • Loss Experience Credits • Large Premium Credits • Good Experience Bonus
Volunteer Coverages • Statutory volunteers • Non-statutory volunteers • Elected and Appointed Officials, including county trustees • 411 employees
Invoicing Return yellow copy with payment
YouTube • Video outlines claims process
Claims Process • Reporting claims immediately • In-house claims handling • Monthly online claims reports
Claims Staff Matt, Claims Manager Kim, Claims Examiner Jenny, Claims Examiner Sara, Claims Examiner Chuck, Senior Claims Examiner
Human Resources Specialist Lisa A. Mart, SPHR, SHRM-SCP lisamart@iowaleague.org Office | (515) 974-5329 Cell | (515) 350-3362 Lisa helps members manage their workers’ compensation exposures by providing human resources assistance.
Loss Control GOAL: To help the member identify and control risks, prevent losses and get everyone home safe
Site Visits • Site visits • Recommendations • Requirements • Seatbelt Policy • Firefighter Criteria • Immediately Dangerous to Life & Health • We’re Not OSHA
Common Recommendations • Job descriptions • Pre-employment physical/functional capacity exam • Designated clinic • Return-to-work • Safety committee • Review and update policies, procedures, etc.
Additional Services • Safety Meetings • Employee Recognition/Safety Days
Workshops • One Day Safety University • Especially designed for safety coordinators • Topics relevant to members’ needs year-to-year • Regional Workshops • Held around the state each winter • Solid Waste Safety Workshop • Focused on Solid Waste issues • Registration open now at www.imwca.org
Online University • New courses added monthly • Track training by employee
Return To Work Now • Online tool to help members with return to work issues • Essential Job Functions • Transitional Work Assignments
Tracker • Online Tool to track the employee • Provides several reports • Develop the OSHA 300 and 300-A report
What questions do you have? timkirgan@iowaleague.org lisamart@iowaleague.orglosscontrol@iowaleague.org
