Finally, some things are pretty much out of our control.  Top of the list: government regulations. A significant ruling has come around the bend recently, and it’s best to keep an eye out for it, before it runs you over.

New NCCI Rulings… NCCI has recently made significant changes to the split point that will ultimately affect the experience mod.

The split point will be increased from $5,000 to $15,000 over a 3-year transition period. After the transition, the split point will be indexed for claim inflation in subsequent updates. Filing for these changes will likely be made in 3rd quarter this year. This change will take effect in 2013, based on each state’s usual rate filing date. For some, it will be 1/1/13, for others later in the year.

NCCI’s data indicates that close to 80% of experience mods will change plus or minus five points. The modification of the split point will most substantially impact the very best and very worst mods. Each company will be affected differently based on the costs of their employee injuries.

A big positive for all businesses is that every company’s lowest possible mod will drop. This means that employers will have greater control over what they pay for workers’ compensation than they have before. For companies that take command of their workers’ comp program, the opportunities have never been better to reduce their costs, even though rates are increasing in many states.

In summary, we may just be skimming the surface of what’s in store for our industry in 2012. But unless the Mayan calendar had it right and everything comes to a screeching halt on December 21, 2012, you can pretty much bet 2013 will be even more exciting.