Oregon Announces 2013 Claims Processing Administrative Cost Factor

Salem, OR (WorkersCompensation.com) - The Oregon Department of Consumer and Business Services Workers' Compensation Division has issued a bulletin notifying insurers and self-insured employers of the revised administrative cost factor for 2013. The Workers' Compensation Division applies this factor to approved reimbursements for supplemental disability benefits and claim costs. The factor is calculated as specified in OAR 436-050-0180. This bulletin replaces Bulletin 316 issued Dec. 16, 2011.

The claim processing administrative cost factor for calendar year 2013 is 17.25 percent.

Supplemental disability benefits quarterly reimbursement
If the insurer or self-insured employer pays supplemental disability benefits, the division will reimburse the payer's costs from the Workers' Benefit Fund. (See OAR 436-060-0500 and Bulletin 325.)

Preferred worker claim costs quarterly reimbursement
The division will reimburse the insurer or self-insured employer's claim costs if a preferred worker has a new injury or occupational disease while employed under premium exemption. (See OAR 436-110-0330 and Bulletin 189.)

The division calculates and adds the administrative cost factor to approved reimbursements. Insurers and self-insured employers may not add the factor to their quarterly reimbursement requests. The factor applied is based on the date the insurer or self-insured employer paid the cost. Insurers' or self-insured employers' administrative costs for specific claims will vary. The factor is intended to cover overall administrative costs for representative claims filed.

Factors for prior five years:   
2012        16.60%
2011        16.11%
2010        17.27%
2009        17.38%
2008        17.15%

If you have questions about this bulletin, contact the Workers' Compensation Division at
800-452-0288.

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