Pub. 6 2024 Issue 2

WCT Board of Trustees reviewed the actuarial analysis and voted on the rebate amount on March 6, 2024. This year, the board has approved a rebate of $3.2 million dollars! The rebate is calculated initially Trust wide by the actuary. Administrative expenses and total incurred claims costs are subtracted from the total available premium to determine the available balance. The available balance by member is determined in the same manner and is then multiplied by the individual member’s pro rata share of the total eligible balance and previous returned rebates are deducted, yielding the current balance per individual member. The individual member’s rebate is based on the performance of the Trust for the years of return and, more importantly, the individual member’s performance for the same years. The return of premium for a particular Fund year will be paid out over the course of several subsequent years. This year’s rebate will include money from the fund years from 2019 through 2022, with the vast majority of the return coming from the 2021 and 2022 fund years. As money from previous years is distributed, there is less money available to return. The 2023 fund year’s claims are still developing, so no money will be returned from that fund year. Members must have a positive fund balance for any given year to be entitled to a rebate for that fund year. For instance, if a member pays a premium of $10,000 and has a compensable claim with total incurred costs in excess of $10,000, the member would not have a positive balance and would not be entitled to a rebate for that fund year. The member would still be eligible for returns from the other fund years with a positive balance. If the claims department is able to recover payments through either subrogation or second injury fund on a claim, that money is returned to the member’s fund account for the fund year of the date of injury. If that recovery results in a positive balance for that fund year, the money will be returned to the member as part of a future rebate. Subrogation and Second Injury Fund recoveries take years to receive, but ultimately, the money is returned to the member’s claims account. If the return does not result in a positive balance for the members, it still improves the overall balance of the fund by reducing the amount that the fund as a whole has to cover for an individual member who has a bad year. Rebates will be reduced by any outstanding premium due to the WCT. In addition, rebates will be reduced by any balance owed to NHADA affiliate groups at the time the rebate is distributed. Please allow the NHADA Workers’ Compensation Trust claims staff to assist you with your claims issues. Contact us at (603) 224-2369 when a claim arises, and we will successfully manage it together to control costs and increase your rebate. 9

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