With the holiday season behind us employers are reviewing Group Rating quotes and “rate predictions” for the July 2008 policy year. In an effort to assist in determining your rate accuracy I thought I would throw out some tips and information you can use during this busy time:
1. The maximum Group Rating discount for 2008 is 85% for private employers. (see BWC press release, https://www.ohiobwc.com/home/current/releases/2007/122107.asp). Many other TPA Group rating quotes are still based on last year’s 90% maximum with a disclaimer. All discount levels are based on the 85% maximum. Question what maximum discount was used for each of your quotes.
2. July 2008 rates are based on your last five years of Workers’ Compensation claims experience. 2007 Fourth quarter information will not be made available to any TPA until mid to late January. To receive the most accurate estimate for the July 2008 rate year, you should wait until the fourth quarter information is available and calculated into your rate estimate.
3. If you are aware or any significant claim cost reductions in the fourth quarter (settlements and/or handicap awards) you should provide this information to the people estimating your rates and/or providing quotes.
4. You have until late February 2008 to select a Group rating proposal. You should evaluate the percentage discount, enrollment fees and the quality of TPA claims services..
5. Finally the BWC has the right to change the base rates for the July 2008 rate year prior to July 1, 2008. (which they have done for many of the past 10 years) These changes can have a positive or negative impact on your February rate estimate.
Hopefully these tips will help you navigate through that sea of Group Rating quotes on your desk.
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