COMPpress 2015 Issue 1 Correction

In our most recent issue of the COMPpress, we inadvertently included an error in the article about the split-point change with regard to inflation. In addition, NCCI has approved South Carolina’s effective date since the time our publication was printed. See the corrected and updated article below:

NCCI Split Point Increases to $15,500

This year, you’ll have at least 2,000 more reasons to get each injured employee back to work. This year marks the third phase in the National Council on Compensation Insurance (NCCI) plan to adjust the experience modification factor (mod) calculation to more accurately reflect rises in claims costs. Generally, past changes have brought mod reductions to employers who are safety conscious—and increases to those who aren’t. The 2015 adjustment is expected to do the same.

How it works

To determine your experience mod, each claim is divided into a primary and excess portion. Primary losses are counted in full, but only a percentage (typically 5 to 15 percent) of the excess portion is included. In 2013, the split point—the line between primary and excess—increased from its 25-year-long position of $5,000 to $10,000. In 2014, NCCI increased the split-point to $13,500.

In 2015, the plan reaches its third and final phase, increasing to $15,500. From this point forward, the formula is expected to be adjusted for inflation each year.

Want to know more about the NCCI split-point change? Visit our website and check out past editions of the COMPpress. (Click on Employer Resources and then Print Materials.)

2015 Split Point Effective Dates

State Effective Dates
Alabama March 1
Arkansas July 1
Florida January 1
Georgia March 1
Kentucky October 1*
Louisiana May 1
Mississippi March 1
North Carolina April 1
South Carolina September 1
Tennessee March 1

* Split-point increase has not been filed by NCCI. Date shown is the anticipated effective date.

View this issue of COMPpress