Ohio Workers’ Compensation

Just another way to control your Workers’ Comp cost - The $15,000 Medical Only Program:
 
- BWC sponsored program which helps keep costs from appearing on your rating experience
- Will help keep rates and premiums lower despite claim activity
- Makes the employer the manager of medical only claims
- The employer agrees to pay up to $15,000 in medical costs per claim
- The employer can pick and choose which claims they want to be a part of this program
- The employer can also withdraw a claim from the program at any time even if they have not paid the full $15,000 yet
- The employer must pay all invoices in a timely manner
- The employer also must keep a payment log as the BWC can audit these files

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On Wednesday, November 14th, a first in BWC history took place in the BWC’s auditorium in Columbus, Ohio.  For over three hours, sixty (60) employers and trade association representatives appeared before the members of the BWC Board of Directors’ Actuary Committee to offer public comment and input to the members of the Board in attendance.   One Hundred Fifteen (115) additional witnesses submitted written testimony only.  The Committee had requested public testimony in response to the BWC Administrator’s proposal to decrease the maximum available credibility discount to employers in the Ohio group rating program from 90% to 80%.  BWC alleges group-rated companies are actuarially being subsidized by non-group-rated companies by an estimated $200 million a year.  At the September board meeting, at the request of the Administrator, the Board had referred the matter to the Actuary Committee for study and to recommend a maximum discount percentage.

(Continued)

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While the Ohio BWC figures out how and when they will introduce their reductions in group-rating savings and participation, here are a few “Do’s” and “Don’t” that may prove more important than ever:

1. Do: Shop around for the best group program for your company.  In 2007, nearly 50 different employer associations (trade groups and chambers of commerce) offered a group-rating program.  Look for a complete list on the BWC’s website.
2. Don’t: Rush into a decision or be led to believe that you must re-commit to your current program before its necessary.  All commercial business group-rating plans are filed with the state on or near the last business day of February prior to the start of the plan year July 1st.  Likewise, don’t remit payment for terms beyond the start of the next plan year until you are certain that you want to renew with your group.
3. Do: Your homework.  Before committing to a different plan, require the administrator to supply the past few year’s projected savings and actual results.  If you find differences greater than 5-7% of the projections, you may want to steer clear.
4. Don’t: Accept a savings projection unless it comes from the sponsoring group’s own administrator.  More than ever, employer associations and websites are started simply to broker access to registered groups.  Be sure you are dealing with the company that is assembling the entire employers group you are considering.
5. Do: Share your successes with your prospective administrators.  If you want the best possible offer, make sure those quoting you know of all recent settlements, handicap reimbursements and cost savings judgments from the BWC.
6. Don’t: Lose sight of the premiums that you would pay BWC if group-rating was not available to you.  Too often employers become accustomed to paying a low amount for workers’ comp insurance and are shocked at the increase when a claim or two enters your claims cost history resulting in disqualification from any group offering.    The competitive nature of group-rating with its multiple tiers of discounts and the commodity-like view of comparing one offer to another has led to no room for error. 

If you haven’t already completed your applications, now is the time to do so.  The Temporary Authorization to Review Information form, or AC-3, is the official BWC document for releasing claim, rating and payroll history to prospecting firms.  While the application process can be a fast paced exercise, the results should be deliberate.  Any savings projections received prior to November 1st should be closely scrutinized.  Third quarter claims data is typically published by the third week in October and will be the basis for a group’s eligible prospects.  Know that fourth quarter data will ultimately determine an employer’s eligibility, and all group plans reserve the right to add or eliminate employers based on these final sets of claims data.

For more information on the group-rating process and how to protect your company from misleading offers, contact Jim Mocho at (216) 520-6377.  

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