Evaluation of the Qualified Loss Management Program for Massachusetts Workers' Compensation

The Massachusetts Qualified Loss Management Program (QLMP), which became effective November 1, 1990, is intended to provide incentive to workers' compensation insureds to seek the assistance of professionals to reduce their workplace losses. A prospective credit is applied to the premium of an assigned risk insured who subscribes to a qualified loss management program. The credit is given for a period of up to four policy years, provided the insured remains in the Program for a corresponding period of time. Credits are halved in the third year and quartered in the fourth year, since insured will be able to realize premium savings through the application of the experience rating plan as their reduced losses become reflected in their experience rating modifications factors.