Changes are underway at The Ohio Bureau of Workers’ Compensation (BWC). Here is what you need to know about changes in billing and the Grow Ohio program.
New Prospective Billing
The BWC is changing to a new prospective method of billing this summer. A transition credit will be provided during this time to prevent a financial burden to Ohio employers. The changes will occur in stages during the year:
• July 1, 2015: Prospective billing implementation begins
• Aug. 31, 2015: Start paying workers’ comp premiums in advance (installments available)
Coming in May
The BWC will mail the first prospective estimated annual premium notice at the end of May. This will be for the time period 7/1/15 through 6/30/16 and is based on your payroll reported from 7/1/13 through 6/30/14. Along with the estimated premium, you will receive a payment schedule and a certificate of coverage. This certificate does not guarantee coverage; the only way to do this is to pay your premium at the appropriate time.
Most employers will receive a transition credit to allow for the change from arrears to prospective billing; To receive your eight-month transition credit from the BWC, your policy must be in good standing (active, reinstated or debtor-in-possession status) as of July 1, 2015 and you must submit your payroll report for the January –June payroll period. Upon completion of the payroll report, your policy will be credited with the transition credit. If your policy is in lapsed status, you are not in good standing and must rectify the situation with the BWC prior to July 1, 2015.
Grow Ohio Program
Under the Grow Ohio Incentive Program, new businesses can either get a 25% up front discount on premiums or participate in the group experience rating program (that can provide up to a 53% discount. Here’s how it works:
- Your new business will receive an automatic 25% discount on your workers’ compensation premiums upon taking out coverage.
- You have 30 days from the time your policy number is issued to join a group rating program.
- If you would like to participate in group rating, you must approach the group to participate. A group is usually based on industry types/activities. For a list of group sponsors, click here.
- Starting on July 1, 2015 BWC will charge a $120 application fee to take out coverage. Once the policy has been established this $120 will be applied to your first years’ premium.
Please join Skoda Minotti on May 19, 2015 for an informative session on changes at the BWC, “The Evolving World of Workers’ Compensation.” Ken Haffey, Partner, Skoda Minotti, who is also a BWC board director and Mark Clendenin, BWC Northeast Region Business Development Manager, will cover these updates and more. For more details or to register, please click here.