The bad news is that it may take a while. The good news is that the Xmod or EMR can be lowered. The basic formula is below:Įxperience Modification Rating = Actual Losses / Expected Losses Expected losses are a little more difficult to calculate and each state’s workers comp rating bureau uses a different formula to predict this. Actual losses are easy to calculate, simply look at your previous workers comp loss history and look up the costs for previous medical & indemnity claims. If you meet your state’s eligibility requirements, your company’s Xmod is determined by comparing the actual losses of your company versus the expected losses projected for similar companies in your industry. For example, in California eligibility is determined by having at least 3 years of workers comp insurance history and then meeting thresholds for payroll in specific class codes. You must meet your state’s minimum requirements with most states requiring a certain amount of payroll and years of workers comp insurance history. First of all, not all companies are eligible for an Xmod.
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