WSMOA Retro Program

Washington State McDonald's Operators Association

How Does the WSMOA Retro Program Work?

L&I tracks the group members' premium and claims costs during a twelve month period of time known as a Plan Year. L&I makes the 1st Adjustment Refund Calculation 10 months after the end of the Plan Year by subtracting the group members' actuarial adjusted claims from their retro premiums. L&I makes the 2nd Adjustment Refund Calculation 22 months after the end of the Plan Year by subtracting the group members' actuarial adjusted claims from their retro premiums. L&I makes the 3rd and Final Refund Calculation 24 months after the end of the Plan Year by subtracting the group members' actuarial adjusted claims from their retro premiums.

What Are The Risks?

Retro is not without risk. If the group's actuarial adjusted claims exceed the group's retro premiums then the group members may be assessed additional premium, up to a predetermined amount. The likelihood of assessment is low due to the historical loss history of the group; the steps that are taken to eliminate employers who have a history of high losses; and the efforts that are taken to control costs once a claim occurs.