The Ravalli County Board of County Commissioners voted Tuesday to accept a State Fund workers' compensation renewal offer after hearing a presentation on the county’s rising experience modification factor and recent claims.

The discussion focused on the county’s experience modification (mod), which county presenters said is 1.71 (171%), and on claim years that drove that increase. The presenters reviewed estimated payrolls, an employer’s liability limit shown at $1,000,000 in the packet, and recent claim costs that staff said are increasing the county’s premium estimate.

Fred Thomas, who presented the renewal proposal and supporting packet, explained how NCCI calculations and three years of claim development affect the mod. “We get to that 1.71. That's our mod. 171%,” Thomas said during his presentation. Thomas told commissioners the packet’s back pages show claims for the last three years that are the primary drivers of the current mod.

Thomas and county staff also described how estimated payroll and actual payroll reporting affect premium billing. Staff noted estimated payroll is used to calculate premiums and that quarterly payroll reports are later used to true up premiums; staff said the packet used a 7% projected increase in payroll for the coming year. County staff gave an illustrative example in the meeting using a $10,000,000 estimated payroll.

Commissioners and staff reviewed recent individual claims as examples: one road-department employee slipped on ice in February, resulting in a claim the presenter said totaled $9,500; staff discussed prevention steps such as offering ice cleats and ice-melt and asked that supervisors ensure snow/ice removal and accountability. Staff said the county also has a number of “zero-based” claims (claims recorded but with no cost) this fiscal year, which do not increase the mod.

After discussion, a commissioner moved to approve “the State Fund work comp renewal offer as presented.” The motion was seconded and carried by recorded aye votes from Jeff, Greg and the presiding chair. Commissioners noted it may take about two years for one bad claim year to fall out of the mod calculation and reduce the mod.

No litigation or subrogation was removed from the county’s mod as a result of the motion; staff cautioned that, per discussion in the meeting, state subrogation processes have limited success in removing claim cost from mod calculations. County staff said they will provide remittance numbers and details to Jana (county payroll/finance staff) as requested during the meeting.