/// Workers’ Comp, Safety
& Unemployment News
Senior Vice President
Cost Containment Programs
There are a variety of programs available to reduce your workers' compensation premiums. Sheakley experts will assist you in determining which programs are the best fit for your organization. Some programs can even be combined and discounts stacked for even greater savings. We will assist in the education, enrollment, implementation, and requirements of each program.
To receive a free, no-obligation analysis, simply complete an AC-3 Temporary Authorization Form - Web. You will receive the results of our analysis within 4-6 weeks from the time we receive your application.
Group experience rating allows employers that are largely the same in business type (homogeneous) to combine their individual claims and payroll experiences to act as one large employer. This discount is shown on BWC premium statements and applies to the rate year employers enroll in the group. We have an in-house underwriting team giving us complete control over the groups we offer.
Group Retrospective Rating+
The group retrospective (retro) rating program is a voluntary performance based incentive program. Similar to group rating, companies are grouped together to achieve lower premiums than they could as individuals. However, in this program, employers continue to pay their own individual premiums and the BWC calculates group retro rebates/ assessment at 12, 24 and 36 months after the end of policy year. This created an incentive for participants to control and reduce losses by practicing effective workplace safety and claims management. Sheakley represents more private Group Retro Program participants than any other TPA, giving our groups the stability needed to minimize fluctuations between projected and actual discounts.
Drug-Free Safety Program+
The Drug-Free Safety Program (DFSP) offers a premium discount to eligible employers for implementing a loss-prevention strategy addressing workplace use and misuse of alcohol and other drugs, including prescription, over-the-counter, and illegal drug abuse within the context of a holistic safety program. DFSP is designed to more effectively prevent injuries and illness by integrating drug free into each company's comprehensive safety management system. The application deadline is the last business day of April for the July 1 program year and the last business day in October for the January 1 program year.
This program helps employers lower their premiums by offering an upfront premium discount in the form of a per claim deductible. The employer is responsible for claims cost only up to the deductible level for any claim that occurs in the policy year of enrollment.
Employers can choose a deductible level appropriate for their business. For deductible levels up to $10,000, the requested deductible cannot exceed 25 percent of their premium in a policy year. For deductible levels of $25,000 or more, the deductible cannot exceed 40 percent of their premium in a policy year.
$15K Medical-Only Program+
Participants in this program pay up to $15,000 in medical and pharmacy bills on a medical-only claim. The employer becomes the manager of the claim, and the Managed Care Organization (MCO) cannot authorize treatment or pay medical bills.
One Claim Program+
The One Claim Program (OCP) is open to private, state fund employers currently enrolled in a group experience rating program.
To participate in the OCP, an employer must have a single significant claim entering in their experience for the first time from the green year. A significant claim is one whose total cost exceeds the expected losses for an employer based on size an industry – also known as total limited losses (TLL) – calculated for that policy year. An employer may only designate one significant, lost-time claim every four years.
In addition to the one significant claim, an employer may carry up to three medical-only claims in their experience. The sum total of these medical-only claims must not exceed the TLL. As the medical-only claims move out of the employer's experience, another many enter, so long as the employer never has more than four total claims in their experience.
EM Capping Program+
The EM Capping Program allows an employer to receive a cap on their premium increase for the policy year. This program caps the EM (Experience Modifier, a percentage applied to the base rate to determine premium) for employers who are becoming penalty rated due to high claims cost and/or removal from a Group Rating plan for the upcoming policy year.
Individual Retrospective Rating+
The individual retrospective rating plan allows an employer to assume a portion of the risk by paying claims cost up to a selected level to earn a premium reduction. The greater portion of risk assumed the greater reduction in premiums. To participate in this program, an employer must have at least $25,000 of estimated premium and meet specific eligibility requirements based on the program selected (Tier I or Tier II).