Labor and Industries’ (L&I) Proposed 2023 Experience Rating Calculations and Rate Increases

Each year, L&I provides you with an experience factor based on your individual performance compared to all businesses in the same risk classification.  Your experience factor is a prediction of how your future claim costs will compare to the industry average and is based on a 3-year experience period.  If your credible actual claim losses are less than your credible expected claim losses in this period, you will pay less premium than the industry average.  However, if your credible actual losses are greater than your credible expected losses in this period, you will pay more premium than the industry average.  Controlling your workers’ compensation costs is key to controlling your L&I premium. 

Labor and Industries has published the Proposed 2023 Experience Rating Calculations for LeadingAge WA Retro members. These were sent out to all members in late September.  The 3-year experience period for 2023 Rates includes fiscal years 2019, 2020, and 2021, or from 7/1/18-6/30/21. For 2023, the medical only discount is $3,570.  If you have a claim that is medical only, meaning no indemnity paid, i.e., time loss or permanent partial disability, the first $3,570 in claim costs will not be included in the comparison of credible actual losses to credible expected losses, reducing your experience factor and the premium you pay. Additionally, if you have no claims with indemnity paid in the 3-year experience period, you qualify for a Claim-Free Discount.  The Claim Free Discount depends on your premium size but ranges from 10% – 40%. 

Additionally, L&I has proposed an average 4.8 percent increase in workers’ comp rates for 2023.  For additional information on this, you can go to www.lni.wa.gov/2023Rates. This website has a question-and-answer section and resources for you to look up your individual risk classes to see impact to your specific risk classes.  Below is a list of the most common risk classes for the LeadingAge WA Retro members, for your convenience:

Risk Class       2023 Change                      Risk Class        2023 Change

0516                3%                                           1407                2%

3905                5%                                           3909                6%

4901                6%                                           4904                5%

4910                5%                                           5301                4%

6103                4%                                           6104                4%

6108                1%                                           6110                2%

6120                5%                                           6303                3%

6509                0%                                           6511                2%

6607                7%                                           6901                9%      

 

Please reach out to your assigned Claims Consultant or Scott DeHem, VP of Claims at Risk Finance, at scott@riskfinance.net if you did not receive a copy of your Proposed 2023 Experience Rating Calculations or if you have any questions.  We are happy to explain the calculation to you and help you develop strategies for lowering your rates in the future.

Questions regarding LeadingAge Washington’s Group Retro program, contact:

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