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Gearing Up For 2019 Experience Rating Changes

May 2, 2018

 The changes to California’s experience rating system, that go into effect January 1, 2019, include a new simplified experience rating formula and the exclusion of the first $250 of every claim from the experience modification (X-Mod) computation. This change is intended to remove the incentive not to report small or “first aid” type claims to insurers and promote the reduction of workplace injury occurrences and costs.

 

The new formula (illustrated above) includes the following three pieces:

  • Actual Primary Losses
    This number equals the cost of losses incurred with each loss limited to a policyholder’s primary threshold
     
  • Expected Excess Losses
    Equal to the average losses expected for businesses of similar size and industry in excess of the primary threshold
     
  • Expected Losses
    Equal the total losses expected for businesses of similar size and industry
     
  • Primary Threshold
    The maximum Actual Primary Loss value for each claim. An employer’s Primary Threshold is based on the total Expected Losses for the experience period and can be found in Table II of the Experience Rating Plan.

To learn more about the changes, read FAQs and access helpful experience rating resources, visit our 2019 Experience Rating page at wcirb.com/erp2019

Share the 2019 Experience Rating Changes Brochure with your clients and colleagues

Webinars

Don’t miss the WCIRB’s series of Mod Talks informational webinars that center on the 2019 experience rating changes. These sessions are a great opportunity to learn more about the changes and to get your questions answered. You can view a recording or register for these free webinars at the links below:

Proposed Rating Values & How to Use the WCIRB X-Mod Estimator
Thursday, July 12, 2018, 10:00 AM PT

A two-part webinar discussing the proposed values to be used in the 2019 Experience Rating formula and WCIRB Experience Modification Estimator usage.
Register Now>

How the New Plan Is Working
Thursday, October 25, 2018, 10:00 AM PT

Early experience of the effects and benefits of the 2019 Experience Rating Plan changes.
Register Now>

Video Recordings

How the New Plan Will Work
An in-depth overview of the 2019 Experience Rating Plan changes.
View the video recording>
Download the presentation slides>

 
Treatment of Exception Claims
Learn how exception claims will be treated in the new Experience Rating Plan.
View the video recording>
Download the presentation slides>