As part of our ongoing rate reform efforts, we’re continuing to focus on assessing premiums based on future risk that each employer brings to the system. Among the concerns you’ve raised is the potential for excessive year-to-year premium increases resulting from the reforms themselves, loss of group discounts or other factors that might result in severe financial hardship to our employer customers.

In response to this concern, during the Board of Directors’ Oct. 30, 2008, actuarial committee meeting, we presented strategies to apply caps to employer experience modification (EM) percents, which will limit significant rate increases. If the board approves these strategies, the following caps will take affect for the July 1, 2009, policy year:

1. A 100-percent between year experience modification (EM) cap for increases due to changes in experience: click here for more information
2. A 30-percent within-year EM cap for increases due solely to the credibility table changes for the July 1, 2009, policy year: click here for more information

We’ll keep you apprised of the board’s decision. In the interim, we hope you’ll find this additional information below helpful.

Frequently asked questions
Capping plan presented to Board of Directors
Capping presentation to Board of Directors

Sincerely,



Marsha P. Ryan
BWC Administrator