X-Mod Formula Change Could be Costly for Employers

By Greg Jones, Western Bureau ChiefThe National Council on Compensation Insurance (NCCI) is proposing changes to the formula it uses to calculate premium credits or debits based on previous claims, saying the current method is out-of-date and no longer accurate.The new formula, however, could result in higher premiums. One risk management expert said resurrecting safety programs and re-staffing positions that were cut during the recession are steps that would be essential to reduce claims costs and lower premiums.NCCI uses an experience rating split point to calculate experience modifiers, cal...