Error Nearly Costs Client $240,000The WA client involved in this study is a non profit organization consisting of independent living and personal care assistant programs.
A mistake was made by an insurance carrier that was actually in favor of our client. The insurance carrier had not accounted for all of the work comp claims in the client’s experience mod calculation, which resulted in the client obtaining a lower experience mod for a three year timeframe. WA kept track of the issue just in case the carrier discovered their error at a later date. The carrier did catch their error, and tried to go back and collect additional premium as a result of the miscalculation on their part.
WA contacted the Minnesota Work Comp Bureau and cited a rule that addressed applicable timeframes for back premium collection. As a result the Carrier was prohibited from going back 3 years to collect the additional premium from our client.
Because of successfully blocking the carrier’s attempts to raise 2008, 2009, and 2010 experience mods in order to collect more premium, WA prevented an increase of about 30 points per mod. This resulted in a substantial savings of $240,000 for our client.
Workers’ Compensation is a game of rules. If you don’t know the rules, it may cost you money.