What is the effect of the new experience rating plan on the return premiums for retrospectively rated firms?
The actuaries estimate that the new experience rating plan will not have a significant impact on the overall retro refunds. This is based on an actuarial study of rating years 2000 through 2004 that showed the new plan would have reduced retro loss ratios by approximately 0.3% in aggregate, which is statistically insignificant. However individual retro associations may see some offsetting impacts depending on the specific sizes and loss histories of their enrolled firms.
Related Questions
- How much does the Plan charge Qualified Beneficiaries for COBRA coverage and how are premiums for this coverage determined?
- How many firms would get a higher or lower Experience Modification Factor using the proposed 2007 Experience Rating Plan?
- What is the effect of the new experience rating plan on the return premiums for retrospectively rated firms?
