The National Council on Compensation Insurance (NCCI) is making changes to their modification (mod) rating system for workers’ compensation coverage. The changes include a state specific split point and a revision to the calculation of accident limits.

Below is a summary of the 2024 rates Marsh McLennan Agency (MMA) currently has access to. Included in this table are only states that saw a change in their split point ratings thus far year over year.

State 2023 Split Point 2023 Per Claim Accident Limit 2024 Split Point 2024 Per State Accident Limit Split Point Change
HI $18,500 $462,000 $25,500 $176,500 $7,000
IL $18,500 $458,500 $28,000 $206,000 $9,500
IA $18,500 $327,500 $29,500 $181,500 $11,000
MI $18,500 $187,000 $19,000 $197,000 $500
MO $18,500 $377,000 $21,000 $151,500 $2,500
NH $18,500 $261,000 $22,000 $164,000 $3,500
NC $18,500 $30,500 $25,000 $179,000 $6,500

*For states that we do not have new loss limit and split point data for yet, we consult with the following schedule to determine when each states new rate filings will become available to use:

Most states that are seeing an increase in split point limits are also seeing simultaneous decreases of per state accident limits per claim. This indicates that going into 2024, the frequency of claims is going to bear more weight on the overall impact of a mod rather than the severity of one individual loss.

For example: a contractor that frequently bids on jobs had a requirement to keep their mod under 1.0, which signifies the company has a relatively lower risk of workplace injuries and accidents compared to the industry average. The contractors mod was reissued this year and the new Illinois rate changes increased the mod from 0.99 to 1.01. A small difference that has had huge impact on the contractor.

With these new rate changes – Illinois, which had a $18,500 split point in 2023, has increased to $28,000. For Illinois in 2023, a $30,000 claim would only count $18,500 towards primary losses. For 2024 mods, $28,000 of that claim will be counted towards primary losses.

For an analysis of your companies Experience Modification Rate and the impact of the new 2024 NCCI split point, contact your Marsh McLennan Agency advocate.

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