WBBA Retro Program

Washington Biotechnology & Biomedical Association (WBBA) Information 

WBBA is a not-for-profit association representing Washington State's biotechnology and biomedical industry.  Since the inception of the WBBA Retro Program in 1999, Labor and Industries has refunded over 39% of the participating members standard premium.  Refunds are distributed based on a company's premium payments and performance.  25% of the overall refund is distributed to members based off their company's premium and the remaining 75% is distributed based off individual performance.

How Does The WBBA 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 WBBA assessment is limited to 15% of the members' plan year premium. 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.

In addition, WBBA had established a contingency reserve from the Retro Refunds which would be utilized first if an assessment occurred.  The WBBA Retro Program has never received, or been close to receiving, an assessment.

For more information on WBBA Retro, contact Craig Smith at casmith@ernwest.com or (800) 433-7601 ext. 804.