In my last post, I covered the similarities between X-Mods /E-Mods and credit scores. This post is about the differences. Some of the differences can be painful. I covered some of the differences in this article.

Differences

One of the main differences between the two is that credit scores can be corrected on any time in the past with no time limit. EMods or XMods are very difficult to correct once they are tabulated - on your Unistat Date. Even if you find an error, if it is more than four years old, there is really no way to correct the E-Mod in this circumstance.

If the Experience Mod calculation was done incorrectly, you can correct it for up to four years in the past. However, if the reserves (Total Incurred) had too high a figure but has been tabulated at the Unistat Date, you may be out of luck. That is why it is very critical to have the correct reserve figures on each of your Workers Comp files before your E-Mod (Unistat Date) is tabulated. I cannot express the importance enough.

The delayed E-Mod system is another major difference. If you work on your credit scores now, some of the results will immediately show in your credit file. Your recent work on such programs as a safety or return to work program will not tabulate fully into your EMod for three or four years. Patience is a very important virtue with the Experience Mod system.

We have seen companies give up on their E-Mod reduction program only to see the E-Mod lower then increase again after abandoning the reduction program. This is one of the points that Senior Management in either a public or private employer must take into account. It is up to the Risk Manager or Workers Comp contact to educate their Senior Management that the results will not be immediate.

I have written many posts on an E-Mod reduction program. There are so many I cannot link to them. However, if you use the search box further down on the right side of the page, you can search the term E-Mod reduction for a list of posts on this subject.

As always, if you feel you need assistance, please feel free to email or call us.