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Changes to the New Experimental Experience Rating (NEER) calculations in recent years, particularly for the 2006 accident year, will result in lower rebates and exposure to higher surcharges. For example, for 2006 the maximum firm NEER costs has increased from three times to four times Expected Costs. This means the potential maximum NEER surcharge has increased by 50%. Other factors include the ever rising projected claim cost reserve factors and the high overhead factors applied to actual benefit costs. Generally, for most employers, it only takes one long term lost time claim to approach or exceed the maximum NEER surcharge. For those employers with a less than perfect record, be prepared for that financial sledgehammer next December. For an analysis of your NEER statement and direction on how you can save money call Dennis Carter at 1-800-361-2667 or email dcarter@compadvantageinc.com. |
