Decisions an employer makes now will influence how these proposed changes will impact them. It’s important to understand the changes so they know what to expect and what decisions to make to help them benefit from, instead of be hurt by, the changes.

This is a subject that shouldn’t be ignored and employers would benefit by being educated and coached through this by knowledgeable insurance brokers or consultants.

It is important for employers to act now to prepare for these likely changes—this is especially true for contractors who are required to maintain a certain mod in order to be eligible to bid on many contracts. Here are some tips for employers:

• Examine your mod worksheet to see if the majority of your claims are under $5,000. If they are, you’re likely to see a decrease in your mod. If many losses exceed $5,000, prepare for an increase in your mod.

• Determine if it would be beneficial to revise your deductible strategy.
Deductibles will now have a greater impact on workers’ compensations costs in some states.

• Minimize the frequency of workers compensation claims by improving safety strategies such as a formal safety plan and safety training.

• Reduce the severity of claims by closely managing each claim once it has occurred. Employers who remain involved have more influence over the final outcome.

• Appoint a safety committee with a designated safety coordinator.

• Implement a strong modified duty/return-to-work plan.

• Consider “cost containment certification” to solidify your risk management/safety program.

• Have a qualified insurance broker review your experience and project the impact of the proposed changes.

Chad Mathis, vice president of risk analysis for Van Gilder Insurance Corp. in Denver, helped write and promote Senate Bill 10-112, which rescinded Med ERA in Colorado. The new law, which took effect in 2011, restored to employers the full financial benefit received from workers’ compensation deductibles they received from 1991-2008. E-mail: cmathis@vgic.com.