How to Read An Experience Modification (EMR) Worksheet

The EMR, EMOD, XMOD or Experience Modification Worksheet can be a valuable source of information…if you know what you’re looking at and where to look! Let’s learn about the parts of a workers compensation experience mod worksheet.

For most employers the EMR worksheet is published once a year by the rating bureau for the state in which they are located (you can use our state directory to look up your bureau contact information.) Policy data, comprised of classification codes, payroll and claim dollars paid and reserved, is reported by the insurance carrier on unit statistical reports to the rating bureau for use in the calculation of an employers EMR. Once the data is received it’s run through the calculation process and the employers EMR is developed.

An EMR worksheet is then a source of compiled data regarding any specific experience rated employer.  Data provided excludes the most recent year past but looks back from there over a three year period.

Information typically found in the head of the worksheet will include:

  • The Employers Name, Address and Bureau or Risk ID
  • Effective Date – The date the EMR will be effective.
  • Issue or Production Date – The date the EMR was produced.
  • State – The state where the employer is located.

Information found within the body of the worksheet will include:

  • Data Blocks – These are separate blocks of data grouped by reporting insurance carrier and by policy period when combined are used to make up the experience period of the EMR.

Information found within each data block:

  • Class Code – Classifications as shown on the policy period in question.
  • ELR – Expected Loss Rate is the amount statistically expected for each classification per $100 of payroll. The ELR is different for each class code.
  • D-Ratio – The Discount Ratio determines expected primary losses. The D-Ratio is different for each class code.
  • Payroll – The employers reported payroll by class code.
  • Expected Losses – Those calculated losses expected for this employer for this class code.
  • Expected Primary Losses – Developed from the calculation.
  • Claim Data – This is claim information developed from the policy in question.
  • Injury Type
  • Claim Status – Open or Closed
  • Actual Incurred Losses – These are the losses actually incurred by the employer and reported to the bureau.
  • Actual Primary Losses – Primary losses are calculated using the split point factor in current use for the state in question.

This information is then gathered and displayed on the summary page of the worksheet where it is used in the actual calculation of the EMR.

Here’s the point of this blog…each item shown in the body of the EMR worksheet has an effect on the calculation and ultimately the experience mod rate developed. Line items, as reported to the rating bureau, are the basis of the EMR calculation. It is essential that this information be accurate. You must be aware that reporting errors may create an inaccurate EMR.

Contact our office if you have questions about your EMR. You may be surprised how we may be able to help!

Hope this helps you out! Thanks!