If Workers’ Comp Is Calculated So Scientifically, Then How Can We Get Refunds?
How Are Workers’ Comp Refunds Even Possible?
This is a great question and one we get asked by every company we help.
The system relies on the insurance companies to provide payroll and loss information to a governing agency (either a state or the NCCI) to calculate the E-Modification for every insured.
There is little incentive for the insurance carriers to spend the time and money necessary to constantly update this information as it will usually lead to them having to give back premium dollars they don’t want to part with! (THEY ARE, AFTER ALL, IN THE BUSINESS OF MAKING MONEY!)
The researching of open claims (reserves), the revision of loss histories, and the filing of changes – all cost them money to do. Likewise, the governing agencies (who work very closely with the insurance companies on many levels) are also reluctant to put in the extra effort to redo that which they feel has already been done once by their limited staff, under limited budgets.
Both parties need to be somewhat forced to comply with the law, and THAT’S WHERE OUR TEAM COMES TO PLAY!
First, we find out if there should be a change. Then, we go to work on getting it implemented by both the governing bureau and then the insurance carriers!