NHRMA Mutual Overview

Background

NHRMA began operations in 1987 as a Self-Insured Illinois Workers Compensation Pool. In 2005, NHRMA transformed into a non-assessable Mutual Insurance Company. Currently NHRMA Mutual has more than 100 members representing over 360 locations the Premium now exceeds eleven-million dollars.

NHRMA Mutual provides workers compensation coverage for specific types of health care operations including: Nursing Homes, Rehabilitation and Residential Care Facilities for the Developmentally Disabled, Home Health Agencies, Assisted Living Facilities, Retirement Communities, and Community Hospitals.

Organization

A member-elected Board of Trustees governs NHRMA Mutual. The Board members must be owners, officers, or employees of NHRMA Mutual Member companies. Each Trustee is elected to a 3-year term; a list of the current Board Members is included. Most of the trustees have many years' experience with NHRMA.

Member Involvement

The NHRMA Mutual Board expects all members to take an active role in controlling their workers compensation costs. Members must be active in following NHRMA Mutual's Risk Management Practices which include Designated Medical Provider, Post-Accident Drug Testing and Early Return to Work. Each member should designate a person who will be responsible for participating in the management of the member's claims.

Loss Sensitive Rating Plan

All member policies are issued based on NHRMA Mutual's Loss-Sensitive Rating Plan.

NHRMA Mutual has an independent actuarial study performed each year and bases its rates upon the results of the study. The actuary determines the expected losses for the program and also calculates relativity factors for each member.

The total incurred claim value for each member is determined each fall (losses are valued as of 9/30), and retro invoices are issued during October.

If a member's total incurred claim value exceeds their Minimum Claim Charge, the member pays the additional amount incurred up to their Maximum Claim Charge. Retro amounts owed are paid in four monthly installments.

Risk Management Credit Program

Since its inception in 1987, NHRMA has promoted effective Risk Management Programs to its members. Those members who fully embrace NHRMA Mutual's Risk Management Programs have realized lower workers compensation costs.

The NHRMA Mutual Loss Sensitive Rating Plan (LSRP) is designed to make each member financially responsible for the controllable element of their workers compensation costs while protecting the individual member from the larger, less-controllable claims that happen from time to time.

While NHRMA Mutual Members are largely responsible for their own workers compensation costs, a portion of each member's costs are often shared by the other members. For this reason it is incumbent on each member to fully embrace the Risk Management Programs that are adopted by the NHRMA Mutual Board of Trustees.

In order to promote 100% participation in NHRMA Mutual's Risk Management Programs, the Board has implemented a Risk Management Credit/Debit Program.

Those members who adopt specified Risk Management Practices will enjoy lower Maximum Claim Charge amounts.