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Workers’ Comp – SIF

MISSISSIPPI HEALTH CARE ASSOCIATION SELF INSURERS’ FUND

History of the Fund

Through the period of 1950-1990, Mississippi nursing homes were repeatedly “shunned” by traditional workers compensation insurance companies.  These companies considered our industry to be “too high risk” to insure.

In 1990, we took matters into our own hands!  The MHCA SIF was created by Mississippi nursing home owners, for nursing home owners and since then, we have never looked back!

The Fund began operation on 10/01/90, with only 17 participants and $300,000 in premiums.  It immediately began to address issues related to the safety and protection of our employees.  The Fund made safety and education an essential component of running a quality nursing home.  It worked with OSHA to reduce the high number of federal safety violations experienced by Mississippi nursing homes.

To encourage continued good practices, the SIF devised a reward system whereby dividends were paid to those homes with few losses.

The Fund also worked with the Mississippi Legislature and the Mississippi Workers Compensation Commission to improve the fairness and functionality of the workers compensation system.

In 20 years, the Fund has grown to over $9,000,000 in premiums, representing approximately 130 Mississippi long term care facilities.  It continues to evaluate the safety needs of its insured and to work toward their implementation.

It’s Your Program

The MHCA SIF is a non-profit, statewide Workers’ Compensation Self Insurers’ Fund.  It is governed by a Board of Trustees which is responsible for all operations.  Only the Trustees, who are elected by SIF members, and the Administrator, who works for the Trustees, are empowered to handle Fund monies.

Eligible Businesses

MHCA SIF is providing workers’ compensation coverage to two types of facilities: “Convalescent or Nursing Homes” and “Assisted Living Centers”.  We do, however, have some insureds classified under the Hospital class codes.  We will consider other closely allied and related class codes.  The facility must also be a member of the Mississippi Health Care Association.

Quality Service

The stability and long-term success of any self-insured fund is based primarily on the quality of its services such as underwriting, claims management and loss prevention.  The MHCA SIF has a staff of experienced professionals to perform these vital functions.  The staff, under the direction of a 40+ years veteran work comp specialist, has set as its goal, “a quality of service far exceeding the insured’s expectations, and superior to any being delivered in the State.”

Size and Strength 

  • Approximately 130 Mississippi extended care employers covered
  • Over $9,000,000 in annual premiums
  • Endorsed by Mississippi Health Care Association
  • Positive earnings each year since Fund’s inception
  • Dividends to Participants: As of January 2012 the Fund has returned dividends to its members totaling over $38,000,000!

Conservative Management

The Fund is administered by a group of Workers Compensation professionals.  It is directed by a Board of Trustees, which is comprised of Nursing Home owners and operators.  Conservative management is exercised in all phases of Fund operations.

Reinsurance Coverage

The Fund insures its solvency much like an ordinary insurance company, by purchasing reinsurance.  This reinsurance protects the Fund from:  a) the effects of a large catastrophic claim, and b) a year of combined negative operating results.  The Fund purchases both Specific and Aggregate excess insurance to guarantee its solvency. MS law requires specific excess coverage only.

Stability

The Fund is the only one in Mississippi which is rated by “AM Best”.  “AM Best” is the premier insurance rating organization in the world.  Our current rating is “A- Excellent-Stable”.  This is the highest rating awarded to SIF Workers Compensation companies.

OVERVIEW OF SERVICES

  • Aggressive Claims Management
  • PPO Network
  • In-Service Training
  • OSHA Training
  • Individual Loss Control Programs
  • Transitional Return-to-work Plan
  • Monthly Premium Payments
  • Interest Income on Premiums
  • Resident Lift Equipment
  • Prior Claims Background Checks
  • Quarterly Loss Runs
  • DIVIDENDS, DIVIDENDS, DIVIDENDS

How the Program Can Save You Money

Advance Discount – As a member of the Fund, you receive substantial front-end discounts.  Your premium is determined in a manner common among all major underwriters.

Dividends – Should the premiums collected by the Fund create a surplus over expenses and ultimate claims liability, Fund members with favorable loss ratios become eligible for dividends in accordance with a pre-approved distribution policy.

Investment Income – Monies held by the Fund earn investment income which also belongs to the members.  After obtaining regulatory approval, these earnings may be distributed to members by the Fund’s Board of Trustees in accordance with a pre-approved distribution policy.

Interest Free Premium Payment Plans

Monthly Self-Reporting Plan – designed specifically for the Nursing Home Industry to maximize your cash flow opportunities.  A 25% escrow deposit is required.  Thereafter, the member makes payments by the 10th of each month based upon actual payrolls incurred in the prior month.  This system has the ability to eliminate that dreaded “additional premium due” from the annual payroll audit.

Quarterly Installment Plan – for members who prefer to pay four quarterly installments in January, April, July and October.  One installment may be prorated accordingly, due to the effective date of the policy.  A 25% escrow deposit is required.

Annual Plan – for members who prefer to pay the full annual premium at policy inception.

FOR ADDITIONAL INFORMATION ABOUT THE MHCA SIF CONTACT US:

2506 Lakeland Drive, Suite 602
Flowood, MS  39232
Phone:  (601) 939-0850
Toll Free:  (888) 927-9227
Admin Fax:  (601) 939-1918
Claims Fax:  (601) 939-1525