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Deductible <br />Premium Credit <br />$250 <br />2% <br />$500 <br />3% <br />$1,000 <br />0 <br />�'7) <br />$2,500 <br />P <br />1 CO <br />$5,000 <br />-i" .k <5 <br />I!. p c <br />$10,000 <br />J6% <br />I,C'Cv <br />LEAGUE or <br />MINNESOTA <br />CITI ES <br />RISK MANAGEMENT INFORMATION <br />WORKERS' COMPENSATION DEDUCTIBLE OPTIONS <br />LMCIT offers several deductible options to member cities of the workers compensation program. <br />Under a deductible option, the city pays a lower premium in return for agreeing to reimburse the <br />LMCIT for paid medical losses up to the deductible. If the city selects a deductible option, the <br />deductible applies per occurrence to medical costs only. <br />What deductible options are available? <br />The deductible options and the premium credits for each are as follows: <br />LEAGUE OF MINNESOTA GI MES <br />INSURANCE TRUST <br />3 <br />2 <br />CONNECTING INNOVATING <br />SINCE. 1913 <br />Who is eligible? <br />All cities who participate in the LMCIT workers compensation program. The deductible options <br />give smaller cities those whose standard premiums are less than $25,000 and who are not eligible <br />for a retro -rated option a way to reduce their premium costs by retaining some risk. The <br />deductible approach may also be an attractive alternative for larger cities who feel the retro -rated <br />premium option is too risky for their situation. A city can select only one premium option. If a city <br />selects a retro -rated option or the standard premium option, they can't also select a deductible. <br />How do the deductibles work? <br />The city pays a deposit premium (net of discounts) to the LMCIT. If the city chooses a deductible <br />option, their standard premium will be reduced by the percentage shown. This will not affect the <br />premium volume discount or managed care discount which are also based upon standard premium. <br />As claims are submitted and medical costs incurred, the LMCIT will pay the medical vendors <br />directly. Cities who choose a deductible option will be billed periodically for their medical costs <br />paid up to their per occurrence deductible. Each occurrence has its own deductible. <br />115 ImmtSI9YAv1. wlsi ri lone: (6511281.1200 1AX: (651) 281- 1298 <br />c PAAIII. MN 33103. 2.014 1011 MN: (800) 925.1122 wt uvwwj Mc *G <br />