RD572 - Recommended Workers’ Compensation Premiums for FY 24 - FY 25; Status and Recommendations of the Loss Control Program; and Number, Amount and Impact on Reserves of Settlements in FY 22 – October 28, 2022
Executive Summary: The Department of Human Resource Management (DHRM) recommends workers’ compensation premiums equal to the cash flow needs of the program. Actual FY 2022 and FY 2023 premiums shown for comparison. Actual FY 2022 Premium: $77,121,714 Actual FY 2022 Premium Plus WCA Repayment: $79,432,604 Recommended FY 2024 Premium: $63,716,657 Recommended FY 2024 Premium Plus WCA Repayment: $66,846,118 • The statewide experience modification factor dropped from .89 to .87. • The required statewide premium calculated for FY 2024 decreased 14.1% from FY 2023 premiums (approximately $10,466,190 before settlement repayment) following a decrease of 3.8% for FY 2022 premiums. • The updated estimated undiscounted reserve is calculated to be $179.5 million lower than last year’s calculation. • The Working Capital Advance settlement program is proving to be a contributor to the lower than expected incurred loss development during the fiscal year and the reduction in the undiscounted reserve can be at least partially attributed to these settlements. Other contributing factors to the lower than expected incurred loss development are the increased engagement of OWC’s loss control team with the agencies in our program, and the early assignment of field nurse case management on lost time claims. In addition, our new Agency Relation Representatives are working more closely with our agencies to ensure that claims are filed timely, and investigated thoroughly. They are also working to ensure that agencies have up to date return-to-work plans, and effective medical panels, while keeping the agencies updated on their loss trends. |
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