OR: New Self-Insured Base Rates Published for Fiscal Years 2017 and 2018

Salem, OR (WorkersCompensation.com) – Oregon self-insured employers will see new base rates to be used in premium assessments for the 2017 and 2018 fiscal years.

The Department of Consumer Business Services informed all self-insured employers by Bulletin 376 last week of the new base rates from July 2017 through June 2018. It also details rate plan options and reporting instructions.

Self-insured employers can opt to compute their best calculation under a Normal or Retroactive Rating Plan, under an Oregon Administrative Rule.

“Once elected, the method may not be changed for that fiscal year and remains in effect until the self-insured employer timely elects to change the methods,” according to the Bulletin. “If a company becomes self-insured after July 1, or does not select an option, the company must use the normal plan method for that fiscal year.”

Bulletin 376 amends last year’s Bulletin 374. Significant changes noted in the Bulletin are new retrospective rating plan tables and hazard groups, new classification codes, and new base rates by hazard groups, and the premium discount schedule under the Normal Plan.

“The normal plan calculates the assessable net premium by modifying manual premium by experience rating and premium discount,” according to the Bulletin that further notes self-insured employers must use the base rates provided if they opt for a Normal Plan. “The premium discount percentage and cutoff points are the same as those applied to a non-self-insured employer’s premium filed with NCCI (National Council on Compensation Insurance).”

There are (approximately) more than 6,000 corporations and affiliates throughout the United States that have self-insured workers’ compensation programs, according to the Self-Insurance Institute of America, Inc. website.

“Many other employers participate in group self-insured Workers' Compensation funds, where they pool together with other companies to self-insure their collective Workers’ Compensation risks,” according to the website.

The Retrospective Rating Plan “calculates the assessable net premium using a one-year retrospective rating plan,” according to the bulletin, noting five options are available under the plan. Self-insured businesses rightfully shoulder risk for possible payout of injured workers’ claim costs for its employees, but to do must be able to afford the obligation that is often erratic with changing rates and claims, according to the Self-Insurance Institute of America, Inc.

“Therefore, small employers and other employers with poor cash flow may find that self-insurance is not a viable option. It should be noted, however, that there are many smaller companies that maintain viable self-insured workers' compensation programs,” according to the website. 

When contacted, the Oregon Department of Communications said the division altered the premium discount schedule “cutoff points” to match those belonging to the insurer, selected to establish the lowest overall rates under OAR 436-085-0030(2).

"The discount rates themselves were not changed, only at what manual premium amount each of them apply," wrote the department in an email to WorkersCompesnation.com.

The division added it is important to keep bulletins readily available and timely for self-insured employers because they rely on them for a whole host of guidance, including but not limited to, how to accurately calculate and report the premium assessment.

"Bulletins are a way to provide critical information (that) a self-insured employer needs to know in an easy-to-read format, typically focusing on information that changes annually," wrote the department.

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This article was updated as of 06/07/17.

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