78 NEBRASKA CATTLEMAN March 2024 GUIDING PRODUCERS TODAY TO FEED THE WORLD TOMORROW Scan the QR code with your smartphone to learn more about Feed and NIRS analysis at Ward Laboratories! 308 - 234 - 2418 www.wardlab.com Ward Laboratories has the analysis, experience and experts to help you reach production goals all season long. PEERS WHAT’S NEW IN WORKERS’ COMPENSATION? TODD BARTEK | FNIC SENIOR VICE PRESIDENT AND AG DIRECTOR NCIG As cattle producers, get ready to saddle up and explore the new experience modification landscape – because the future of your premiums may experience a change. The National Council on Compensation Insurance (NCCI), which regulates the workers’ compensation system in 36 states including Nebraska, recently rolled out changes. An impactful revision was made to the split point. To understand the change, it is important to understand how the experience modification factor and claims expenses affect workers’ compensation premiums. YOUR RATE Insurance companies play a pivotal role in setting workers’ compensation insurance premiums. They group similar businesses into classes and typically review five years of loss data for the group to determine the rate. Agriculture as a class has a high injury and illness level affecting the rate for agribusiness, which includes feedlots and cattle operations. However, you have a measure of control through an additional layer of rating known as the experience modification factor. EXPERIENCE MODIFICATION FACTOR Your experience modification factor, sometimes referred to as the experience mod or e-mod, is a numerical representation of your claims history. It compares the costs of your actual workers’ compensation claims to the costs for your class. The experience mod serves as a multiplier in the calculation of your workers’ compensation premium and directly influences the premium you pay, either increasing or decreasing it based on past loss experience. An experience modification factor of 1.0 indicates an average experience, with employers paying the manual premium; values higher than 1.0 reflect poorer loss experience and paying more than the manual premium; and values less than 1.0 signify good experience, resulting in paying less than the manual premium. Not all claims costs are treated equally in the experience mod calculation. Medical-only claims, where employees do not miss work or return within the waiting period, have only 30 percent of their costs included. Additionally, for larger claims involving CONTINUED ON PAGE 80
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