Part 2: Workers’ Compensation Mysteries Unraveled

Changes in the EMR System:

Many businesses may have noticed a significant change in their EMR number, with no explanation for the change. The way the EMR system worked in the past was on a percentage system based on groups. The groups were based on the amount of premiums a company had paid in. The following table reflects the organization of the group structure:

 

 

The percentages reflected in the table are the caps on what percentage of the base rate an employer pays out in premiums. For example, a company that falls in group 3 (as defined by their premium payments) could pay anywhere from 65 % (100 % plus a -35 % EMR rating) of the base rate up to 135 % (100 % plus a +35 % EMR rating) of the base rate, depending on their safety performance.

These groups were designed to protect smaller businesses from extremely high premiums and to reward larger businesses for good safety performance. The EMR rating was still based on the safety performance of the company, but this grouping system limited the rewards/consequences for safety performance based on the size of the company.

Recently Wyoming Workers’ Compensation has changed systems that switched the way EMRs are reported. Instead of a percentage added to or subtracted from the premiums, they now use a multiplier system. The groups are now set up as follows:

 

 

Again, the company that falls into group 3 would pay between 65 % of the base rate up to 135 %. There is no change in the premium payments, but it is just reported differently. A lot of companies have panicked seeing an EMR of -20 change to a 0.8. That would be a very drastic change if it went from -20 % to 0.8 %, but the 0.8 is the multiplier equivalent of the -20 %.

*Unless specific citations are shown, all answers are based on interpretations provided by authorized officials. As such, all information is deemed reliable, but not guaranteed.