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Board questions nearly 20% jump in workers' compensation premiums; administration cites claims-driven state formula
Summary
Board members asked why workers' compensation quotes rose by almost 20% this year; a district representative said premiums are driven by the district's claims history and an experience-mod factor used in the state's formula, and recommended continued workplace-safety efforts to reduce future rates.
Board member Miss Solomon asked the administration why the district's workers' compensation quote increased by nearly 20% compared with the prior year. A district finance representative explained that workers' compensation rates are calculated using a state formula driven by the district's claims history and an 'experience mod factor.' The representative said an extended look-back period in the formula and recent claim frequency or larger claim payouts have increased the district's rate.
The finance staff said they use their broker (CBIZ) to obtain quotes and that the quotes reflect the district's claims data. The representative encouraged continued internal safety efforts and said that if claim frequency decreases in future periods, the experience mod and premiums should fall.
No board action was recorded in the transcript beyond the question and the administration's explanation.
