What do you do when you get your March NEER statement? Throw it in your desk and hope it disappears? Stare at it for hours trying to make sense of what the numbers mean? We know that these statements can appear intimidating at first glance, but understanding them and paying attention to what they mean for your company is important for various reasons.
These are a few things you should know when it comes to your statements:
Forecasting your September NEER position
Upon receiving this statement, it is important to know if you currently have any active claims or claims that are receiving Loss of Earnings (LOE) that could negatively impact your September NEER statement. Your claims management process and actions regarding return to work and accommodation will influence whether you are in a rebate or surcharge position.
Current NEER position will impact your place in the new system
There are only two September statements left before the new WSIB system is implemented. The new system will place companies in a new rate group based on their historical experience and claim costs. Consequently, it is important for your company to improve their upcoming NEER results as this will impact the premiums they pay in the new system. To read more about the new WSIB rate framework, click here.
The WSIB’s eService system faster and more convenient
The WSIB has an eStatement system that allows you to access your statements and view changes in a faster, more convenient way. Creating an account can save your company weeks of time when it comes to understanding your current NEER position and how to improve it before the September statement. You can sign up for this system on the WSIB website.
Clear Path can help
Clear Path’s approach to claims management is to return injured employees to work with suitable modified duties at full wages as soon as possible. We work to foster an early and safe return to work plan that is accompanied by medical management to ensure that the best and most effective steps are being taken for you and the employee. Clear Path will continuously communicate with your WSIB adjudicator and the employee, alleviating much of the stress that managing these claims can cause.
Clear Path has an upcoming Introduction to NEER Workshop in Cambridge on June 15. Our workshop explains the NEER system in an easy to understand way, and we provide you with useful resources that will help you better manage your claims, ultimately saving your company time and money. To register click here.
We are also happy to offer a complimentary NEER review of your most recent statement. Our consultants will forecast your costs for this year and identify areas of potential savings. To receive this review, you can book here.
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Class Level Premium Rate Settings
This blog is part two of a three-part series which examines the proposed fundamental changes to WSIB’s method of business classification and application of premium rates. Part one of this series explored how WSIB proposes to re-categorize Ontario businesses into 34 industries, based solely on “business activity”.
A major question now that needs answering is whether premiums will change due to this re-categorizing. This blog will outline how the WSIB plans to maintain fair premium rating through the implementation of a “Class Level Premium Rate Setting”. Let’s dive in…
Will my Premiums Change?
The answer to this question is… likely. Here is where things are going to become very different. Under the current system, employers in the same classification and rate groups pay the same premiums, regardless of their own claim experience. For example, our cabinet making company from Part 1 had very few claims over the last couple of years, and yet they know they are paying the same premiums as their competitor even though the competitor may have been repeatedly showcased in the media for serious workplace accidents. Is that fair? The proposed new system says no. Instead, WSIB proposes to assess employers individually on their own claim experience to determine their premium rate. How? Through the implementation of “Class Target Premium Rates”.
The Class Target Premium Rate System is exactly what it sounds like – a target rate within each of the previously discussed 34 industry classes that would reflect the collective experience of all employers. This “rate” is based on three components and is not unlike the current system in that it covers administration costs (legislative/overhead), new claims costs (expected future costs) and past claim costs. These amounts would obviously vary between each of the 34 proposed classes, as demonstrated by the below figures.
So… what’s the difference?
The distinct difference between the current system and the proposed lies in the “Employer Level Premium Rate Adjustments”. This “adjustment” is WSIB’s proposed method of adjusting the Class Target Premium Rate for each individual employer to arrive at an employer’s individual “Actual Premium Rate” relative to the “Employer Target Rate”. How is this calculated?
This is another major difference. The WSIB is proposing to calculate adjustment based on RISK, which would be represented by an employer’s own claim experience and insurable earnings relative to their Class Target Premium Rate. This adjustment will be known as a “risk band” and will represent a series of divisions within each class where employers will be placed relative to their Class Target Premium Rate. “Risk bands” will be discussed in more detail in part three of this blog.
What is Rate Disparity?
The idea of charging Ontario employers with premiums at the class level (Class Target Premium Rate), as opposed to the rate group level, brings several questions to mind. One being the possibility of “risk disparity” or when premium rates vary significantly from the average experience of the class. In other words, risk disparity sets the stage for the possibility of newly grouped businesses being subjected to a premium rate that misrepresents their risk. For example, under the proposed 34 classification structure, our cabinet making company may now be grouped with other business activities not previously included under the current “manufacturing” definition.
What if your company is now required to pay a premium rate at the class level that is either significantly higher or lower than your current rate group premium? The WSIB plans to address said disparity by including premium rate limitations on upward and downward movement through minimum and maximum risk bands within each industry class.
This measure is intended to achieve fairness in the premium rate process and will be explored further in part three of this three-part series. Check back soon for further information on Employer Level Premium Rate Adjustments.
We want to hear from you! Contact Anna Aceto-Guerin from Clear Path Employer Services with your questions on the Proposed Rate Framework’s Class Level Premium Rate Setting.
Want to learn more about how to get yourself in a prime position on your NEER prior to the implementation of this new system? Join us at one of our spring NEER workshops.
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Mental health claims are on the rise in Canada. In fact, according to the Mental Health Commission of Canada, disability claims have doubled over the last 20 years with mental health conditions accounting for approximately 47 per cent of them.
In any given year, one in five Canadians will experience a mental health problem or illness. This translates to approximately 30 per cent of short- and long-term disability claims. The Canadian Mental Health Association indicates that these claims are estimated to cost our health care system $4.7 billion in care, $3.2 billion in disability, and more than $6 billion in lost productivity costs due to employees taking time off while sick, struggling to work while sick and turnover.
Preventing Mental Health Issues in the workplace
Mental health disorders that are unrecognized or untreated not only damage an employee's health and career, but can also reduce productivity in the workplace. Adequate treatment, on the other hand, can alleviate symptoms for the employee and improve job performance. Accomplishing this requires a shift in attitude about the nature of mental disorders.
This year’s CMHA Mental Health Week is encouraging Canadians to #GETLOUD about mental health. No one can be truly healthy and happy without positive mental health. To try to achieve this, Canadians require psychotherapy, counseling and community-based mental health services and programs.
Workplaces can play a critical role in maintaining positive mental health. By ensuring an open-dialogue and creating a safe environment for conversation, an employee may be more likely to seek treatment without being afraid of any ramifications from their employer.
Unfortunately, no workplace is immune from the risks of claims associated with mental health.
When faced with a worker injury or illness, you want to get the employee back to work and productive as soon as possible.
Injured or ill workers can have significant impact on financial and human costs for your company,however the process of managing disability claims can be frustrating and time consuming. Clear Path has you covered with our disability management services, helping you reduce your claim costs for your business.
If you need help, contact us for a complimentary 15-minute consultation.
Anna Aceto-Guerin, President and Senior Consultant
Clear Path Employer Services / HR Consultant
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Learn how Clear Path can help you manage your HR and Claims Management needs!
Clear Path Employer Services
295 Thompson Drive, Unit 2
Cambridge, Ontario N1T 2B9
T: (519) 624-0800
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