What is a MOD and How Does It Impact Workers Comp Premium?

Workers comp premiums are partially determined by the MOD rate of the company. An average MOD rate is 1.0 and anything less means the company is paying under and anything more means the company is paying over. For example, if a company has a MOD rate of .7 then they are paying 30% less than the industry rate. If a company has a MOD rate of 1.3 then they are paying 30% more than the industry rate.

The MOD rate is partially determined by the OSHA recordables it accumulates. The more recordables a company has, the higher the company’s MOD rate increases. After knowing this, the goal of the employer is to decrease any unnecessary recordables. This can be as easy as choosing a medical provider who understands that concept. The medical provider can then only prescribe medications if over-the-counter drugs won’t do the trick. This alone can help decrease recordables and keep the MOD rate from going up more. Choosing informed medical providers is one easy method that can help keep the MOD rate down and save the employer and company money on their workers comp premiums.

Haight, Adam. “MOD Rates: Impact on Workers’ Comp Costs.” Peoriamagazines.com. N.p., 27 May 2009. Web. 29 June 2015.