Upcoming Changes within the WSIB
By Olivia D’Orazio
Under the current WSIB system in Ontario, employers fit into one of three categories that determine how adjustments are calculated. Once the insurance board moves to its proposed system, employers will still receive an experience rating, which will still factor into adjustments, but the calculation itself will face reform.
“The new system will have one calculation for all employers,” says Michele Bruton, senior WCB financial analyst for Isthmus Legal. “So (the WSIB) is wiping out three experience rating programs that people know and use currently and are inputting a different system that is going to have different impacts and implications, and different ways to manage claims.”
The new system will be a hybrid of what is currently used in British Columbia, New Brunswick and Quebec, and could compel employers to change the way they forecast and budget for the year.
“They’re changing how much they’ll charge for overage and how much they’ll give back for underage,” says Sandeep Jindal, legal counsel for Isthmus Legal.
Two of the current systems, NEER, which is for non-construction companies with annual claims over $25,000, and CAD-7, which covers the construction industry, are retrospective. Employers pay an upfront fee – or receive a rebate – if they go over or under their expected claims cost for the year, as determined by their experience rating.
However, the new system, like the MAP calculation for companies with annual claims up to $25,000, will be prospective, so an employer’s premium would be adjusted based on the experience rating they receive that year.
“If you’ve already paid a surcharge, then (the WSIB) bases your premium on a claim you’ve already paid for – it’s double dipping,” Bruton says. “There’s a huge issue with how they’re going to implement it and whether or not it’s actually going to be fair.”
Isthmus Legal is a Canadian law firm and consultancy that specializes in workplace injury claims management. Isthmus Legal is a partner and representative of employers, providing an ongoing, integrated and complete workplace injury claims management solution.
Isthmus Legal offers legal and consultative services in the form of the Integrated Advocacy Program (IAP), which bridges the gap between legal services and consultative services, while maintaining the highest legal standards and cost efficiencies of a consultative approach.
With extensive experience in workplace injury claims management and legal services, Isthmus Legal has been successful at demystifying the workplace compensation system and creating absolute claims management peace of mind for their clients, such that they can feel confident and secure that the management of their workplace injury claims are being handled with precision, competency and speed in order to maximize operational efficiency. Isthmus Legal provides its clients with successful management of workplace injuries by advocating tirelessly on behalf of the client's interests, providing them with a voice and a total solution to their workplace injury claim issues, while mitigating claim costs.