A refresher on Mass Workers Comp QLMP premium credits
With the Workers Compensation market tightening up, many risks are being forced to secure coverage through an Assigned Risk Pool. Approximately 15% of all Massachusetts risks are currently assigned to the pool, but this percentage could increase with the anticipation of Chartis and ACE pulling back and showing less of an appetite for this line of coverage.
In Massachusetts, members within the pool are eligible for what is known as a Qualified Loss Management Plan (QLMP), which is a prospective credit for a period of up to four years. Since the assigned pool is becoming more common, we thought a refresher on the QLMP premium credits were in order.
In the early 90s when the pool was heavily populated, QLMP providers were retained frequently to offset premium costs and improve the risk profile. These providers help insured’s put protocol in place to avoid or reduce losses, i.e. safety manuals, develop back-to-work programs, and with accident identification. According to the Massachusetts Workers Compensation Bureau, these protocol warrant discounts against the premium due to the likelihood of more favorable losses in the future.
Risks that utilize the services of a QLMP provider are eligible for a credit against their assigned risk workers compensation modified premium including ARAP charges (All Risk Adjustment Factor – a surcharge that increases premiums over and above the experience modifier, and in MA the ARAP can be levied against all employers, not just those in the Assigned Risk Plan). The Workers Compensation premium has to reach a certain threshold so the credits offset the cost of utilizing a QLMP provider. A good indication is around $50,000. Credits range depending on the provider but are in the range of 10-15% for the first year, and decrease over the following three years to 5-7.5%. Insureds are eligible only once, the credit is in effect for 4 years but the years do not have to be consecutive.
Since the workers compensation markets have been more lenient in more recent years, some employers may not recall if they ever retained a QLMP provider and received the credit. You can contact the Mass WCRIB and inquire, but you will need you Combo ID which you can easily find here .
Some QLMP providers are: Stephenson & Brook , The Insurance Advisory, Future Comp, Advance Insurance Services, Campbell Mgt., and Health & Safety Solutions. Remember credits as well as services vary. WGA just recently published a White Paper outlining the various state fund programs and the QLMP Providers, click here to view WGA’s White Paper on dealing with the changing Workers Compensation marketing. For more information, we encourage you to contact your Client Executive at WGA.
About the Author
Ronni Rausch is a Vice President at WGA, and works with a variety of clients, from public entity institutional and not for profit companies to consulting and staffing firms, negotiating the broadest possible programs at the most competitive premiums available for each client.