The official word we’ve been waiting for is here: NCCI has published one of its “FYI Plus” memos on proposed revisions to the experience rating plan primary/excess split point value and to the maximum debit modification formula. The FAQ document, FYI-CW-2011-05, is publicly available here in the Industry Information /Regulatory Activities section of the NCCI site.
The FAQ corresponds to NCCI Item E-1402, which the bureau is submitting for state regulatory approval as announced in Circular CIF-2011-14.
We’re happy to report that our prior analysis of the plan changes is accurate in light of this FAQ. One notable clarification is that
A state’s third effective filing year will further increase the split point to $15,000 plus two years of inflation adjustment (rounded to the nearest $500). [emphasis mine]
What seems most significant to you in this FAQ document? What further questions come to mind?
- Kory Wells, WorkCompEdge Blog Editor
© 2011 Zywave, Inc. All rights reserved. For reprint permission, contact the blog editor.
Filed under: Experience Rating (the Mod) Tagged: | NCCI, regulatory activities, split point, workers compensation
Kory,
I do not seem to have access to the NCCI circulars. Is there an update on the NCCI combinable states that will not be participating in this change, specifically the 7 independent bureau states (IN, MA, MN, NC, NY, TX, WI). In the very least are any of these not mentioned in the schedule. Have any states rejected this change, or plan to?
Thanks,
Michael Hoff
Hi, Michael,
Approval by NCCI states seems to be proceeding very well – as of the most recent circular I’ve received (dated 10/6), 24 states have approved the change with effective dates ranging from 1/1/2013 through 11/1/2013: AL, AZ, AR, DC, HI, ID, IN, KS, KY, LA, ME, MD, MS, NE, NH, NM, OK, OR, SC, SD, TN, UT, VT, and WV. (Typically the change becomes effective on the same date those states would normally have a rating update, although I haven’t had a chance to check all of these for that fact).
Those would be NCCI states, of course. As for the independents, a quick check of most of their websites isn’t showing anything new with regards to this issue…but, I will revisit this soon and post any updates I see. I would expect at least some of the indepdendents to take NCCI’s lead on this, and Iknow I noticed one bureau (NYCIRB, I believe) mentioning that they were studying the issue.
All best,
Kory
Thank you very much for clarifying Kory!