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Group Retro Program
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What is Retro?
The Department of Labor and Industries (L&I)
offers Washington employers the opportunity to receive a refund on their workers'
compensation premiums through an optional program known as group retrospective rating, or
Retro. The group earns refunds on its premiums when their claim costs are below a certain
level
Since 1981, when Retro was first allowed, L&I has refunded over 750 million dollars
to Washington employers from premiums not needed to pay claims. Currently 15,000 employers
are enrolled in Retro with more than 90 percent of them involved in group programs, such
as the WBBA Retro Program.
How Can Retro Save My Company Money?
Ten months after the end of the program year, the Department of Labor and Industries
(L&I) compares the actual and anticipated cost of claims incurred during the year
against the premiums paid by the group members. If premiums paid exceed claim costs, a
refund is issued to the WBBA. At that time, WBBA distributes a portion of the refund to
each group member, retaining the rest for L&I's second comparison of premiums to
claims, which occurs one year later. At the time of the second comparison, the remainder
of any refund due to each group member, plus interest earnings on the refund held, is
distributed to the member.
How Does the WBBA Retro Program Work?
If your company is accepted into the WBBA Retro Program, your workers' compensation
claims will be managed and overseen by WBBA’s program partner, Employer Resources Northwest (ERN). ERN will work with
the members, injured workers, L&I, physicians, and other health care providers to
ensure that claim costs are kept to a minimum and that claims are closed in a timely
fashion. ERN will work with members to increase safety in the work place and develop
beneficial loss prevention policies. The WBBA Board of Directors, members just like you,
oversee the Retro program.
Is Program Acceptance Automatic?
All program participants must meet eligibility standards set by WBBA and the Department
of Labor and Industries. Companies with poor safety experience are not allowed to
participate, although they may participate in later years if consistent improvements are
realized. This keeps the participation risks low and the refund potential for the entire
group.
After submitting your Authorization for Release of Information form ERN evaluates your
company’s premium and loss experience. If your company qualifies to participate in
WBBA Retro, WBBA will forward to you complete program details, an evaluation of your
refund potential and the program enrollment agreements. This program is only available to
members of WBBA in good standing who meet the eligibility criteria.
What Are the Risks?
In the unlikely event that the group's program year claims costs exceed premiums paid,
participating members can be assessed up to 15 percent of their annual premiums. The
chance of assessment is unlikely due to the program acceptance criteria, claim management
services and the group's historical premium and loss results.
What Are the Costs?
WBBA members enrolling in the program will be charged a program enrollment fee equal to
one percent of their previous calendar year's industrial insurance premium ($50 minimum
enrollment fee). Group members will be charged a quarterly service fee of 2.5 percent of
their quarterly industrial insurance premium ($25 minimum service fee per quarter). These
fees cover the costs of the program’s claims management services.
At the time of refund, WBBA will retain up to 5 percent of the group's refund to help
offset program expenses. In addition, up to 10 percent of the group's refund will be set
aside in a contingency reserve to help offset any future assessments or liabilities
created by the program, should they occur.
Financial Benefits Aside, Why Enroll in Retro?
L&I's motivation in offering Retro is to encourage employers to take an active role
in worker's compensation loss prevention and loss control. In addition to the financial
rewards Retro members come to expect, additional benefits are realized:
- With a professionally managed and administered Retro program, members receive timely and
comprehensive claims management services. This frees up valuable staff time and returns
injured workers to the job sooner.
- Members typically experience reductions in their per hour L& I rate due to cost
savings through professional claims management.
- Members receive monthly and quarterly reports detailing claims activity and costs.
- Loss prevention and loss control training is provided to each member to assist in
further lowering claim costs.
How Can I Find Out if My Company Qualifies?
The first step is to complete and return an Authorization for Release of
Information form. This will allow WBBA and ERN to obtain the necessary premium and loss
information from the Department of Labor and Industries. Completing the form does not
obligate you to join the program and all information will be kept confidential. In
addition, you will receive a copy of the information provided by the Department of Labor
and Industries.
Who Do I Call With Questions About Retro?
To learn more about the program or to request a release of workers' compensation
authorization form, call or e-mail Pam Love, Director of Membership at (206) 624-1967 or PamLove@washbio.org, or Craig Smith at Employer Resources
Northwest at (800) 433-7601 ext. 15 or casmith@ernwest.com.
They will be happy to answer any questions you may have about retrospective rating, your
company's industrial insurance account, the Washington workers' compensation system, or
other WBBA member benefits.
Retro Program Information Release Form
Washington Biotechnology & Biomedical Association
200 1st Ave West, Suite 200
Seattle, WA 98119
Phone: 206.624.1967
Fax: 206.628.0899
E-Mail: washbio@washbio.org
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