Updated: Jan 5
The Missouri Employer-Paid Medical Program allows employers to have certain medical-only claims excluded from their experience modification calculation. Until a rule change in August 2016 the rules for excluding these medical- only claims from your experience mod were as follows:
Claims didn't exceed $1,000
Employer pays all medical costs
No lost time
Employer still reports all injuries
The rule change significantly increased the limit to the dollar amount of claims that can be excluded. Instead of fixing it at $1,000, the limit is 20% of the NCCI Split Point (email, call or message me if you want to know more about the Split Point).
So, if you take advantage of this program, as a reminder, remember that this amount now changes every year. That's because the NCCI Split Point is pegged to a measurement of medical inflation and adjusted annually.
In 2018 the Split Point was $16,500 so the limit (20%) was 3,300. Now, in 2019, the Split Point is $17,000, and the resulting limit is $3,400.
If you take advantage of this program, the size of the med-only claims that you can pay and exclude from your experience mod has grown substantially. Just remember that the limit is going to change annually and that's something to remember to check if you take advantage of this unique program.
Stuart Cytron, MBA has been published in trade journals such Construction Forum St. Louis and St. Louis Business Journal among others. You can read more about Stuart and how he developed a passion for helping businesses reduce work comp expenses on his website.