Discussion Paper - Experience Rating System Enhancement – Excess Cost Surcharge
A review of the Experience Rating system identified that it did not appropriately rate firms that had significantly higher claim costs than other firms within their classifications over several years.
At issue was whether changes should be made to the Experience Rating system to impose an Excess Cost Surcharge on those firms with consistently higher claim costs than others within their classifications over several years. Under this proposed program, participating firms would be charged rates that more closely reflected their costs, starting in 2009.
Consultation closed November 9, 2007.