Background Of Assessment Process

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Each company’s indemnity amount is determined by summing the amounts paid or payable for each "first closed" claim. Indemnity includes payments for temporary total and partial disability, permanent total and partial disability, compromises, death benefits and funeral expenses, paid holidays, supplemental benefits, disfigurement, and vocational rehabilitation.

The department’s worker’s compensation administration assessment rate is computed by dividing the current fiscal year’s net operating cost by the total indemnity payments by carriers and self-insurers for claims closed in the previous calendar year.

Self-insured employers would pay an additional assessment amount to cover the administrative cost of operating the self-insured employers program. The self-insured employers’ invoice also includes the $200 self-insured renewal fee period of July 1 through June 30.

If you have questions about the assessment process, please contact Pati Brown at (608) 405-4598.