b'Experience Modification ForJDula Changes On July 1, 1998 the Nationaltestedthenewfactorsusedinis called"after the cow has left in Council on Compen Insur ma the calculation againstthe barn". Second, when claims sationkingthe ance (NCCI) began to implementcurrent formula using the sameare not reported it undermines the the 1 Adjustment to the Expe loss experience and the result wasstatistical data on which the expe998 rienceRatingPlaninfourofthat the mod, in fact,onerience rating plan is based. dropped MRCA\'smemberstates.Thatpoint.Byreducingtheweighton same change has been approvedHowever, it is importantlookmedical-only losses, the formula to for later dates in five more statesat how these changes are going toisreducingtheincentivefor and is pending in another seven.be made in order to project theirinsureds to pay the small claims Mark NauserSo the effects of this change willlong-term effect.themselves.Lookingback,our reach most all of our membersThe most interesting change istest case is a-active roofing inprothe very near future.in the method that will be used tocontractor who has had no excess In essence, the adjustment isreduce the weight of medical-onlylosses (claims over $5,000) and intended tomake the followinglosses. The$5,000 of anyhas paidsmall claims himself. firstthe three changes:individual loss is considered pri If he can continue to avoid excess Reduce the Weight on Medical mary.Anyamountexceedinglosses, theformulawillnow Only Losses$5,000 is treated as excess loss.absorb up to aof $8,000 per total Increase the Weight on ExcessUnder the 1998 adjustment, onlyyear of medical-only claims withLosses30% of the actualprimary andout any increase in h mod. is nt forindAccou the Effects of Infla excess portions of anyividual,This poses an important question on theBetween Pri medical-onlyclaimwillbetion:you continue to pay SplitShould mary And Excess Lossesincluded in the cal for insurance and pay the small culation.claims yourself? The answer lies Whatdoesthisin testing the changes in the formean in p Eng- mula against your current experilain lish? Basically, ence modification.Insurinsur MRCA ershaveseenthatance& Bondscanhelp you employers have learnedmakethatcalculation.Foran it reducestheexperi assessmentofyourparticular ence mod if they pay theneeds, please call us at888-572-small claims themselves2467. and keep them out of the calculation. The problem that has followed From anoverall perspective,this thinking istemploytha many the NCCI expects that "employersers don\'t even report their medwillexperienceveryminimalical-only claims. They simply pay impacttothe mods."Thisthe bill and avoid filling the claim. ir appearstobetrueas wehaveThis in turn causes two problems. First, ifmedical-only claim detea riorates into alost time serious, claim,thecarrierwhoisbest qualified tosituation manage the'