Premium Audits Are Changing October 1st

Continued From The Last Post -

The structure of doing premium audits and E-Mod/X-Mod reviews are changing October 1st. All the rating bureaus will be changing how they calculate E-Mods including California. As I said in the last post, there are some major components of claims that will need to be examined more closely after the new changes.

Without becoming too technical, a claims review background will now be needed to fully understand how companies' E-Mods/X-Mods are calculated. The E-Mod/X-Mod calculation sheets will even look different. Unfortunately, the formula for calculating the E-Mods/X-Mods will now be more complicated. The new rules will add on multiple columns of claims information where before there was only an injury code, status code, and the total incurred figure.

A loss run review is now even more important. I have posted numerous times about having online access to your claims information. This will now even be more important. Having inaccurate claims information will be very costly.

I will post more on this situation after the first of next month when the changes become effective.