Overview

The BWC Deductible Program and Large Deductible Program, offered by the Ohio Bureau of Workers' Compensation (BWC), allows employers to participate in a per claim deductible plan, resulting in a prospective premium discount. The program goal is to encourage safety and effective claims management. Ineffective safety and claims management programs can result in the deductible cost exceeding premium savings. members receive premium refunds ranging from 10 percent to 50 percent of their individual premiums paid.

How the Deductible Program Works

The employer selects a deductible level when applying. The deductible level cannot exceed 25 percent (Deductible Program) or 40 percent (Large Deductible Program) of your premium in a policy year. The employer is responsible for claim costs up to the deductible level for any claim that occurs in the policy year of enrollment. As a result of paying a deductible, the employer is eligible for a workers' compensation premium discount.

Participation Requirements

An employer must submit a BWC Application for Deductible Program (U-148) and meet the following criteria:

Enrollment Deadlines

Private Employers
March 1 through the last business day in April, with coverage beginning July 1 through June 30.

September 1 through the last business day in October, with coverage beginning January 1 through December 31.

Deductible Level Options

*Employer may not select an amount greater than 40% of the standard premium paid in the last full policy year.

Program Compatibility

If you are participating in the BWC Deductible or Large Deductible Program, you may not participate in the following:

Combined discounts for employers participating in both the Deductible Program and a Group Rating plan cannot exceed the maximum credit allowable for group during that rating year.

Paying Your Deductible

BWC continues to pay claims costs in full. The employer reimburses BWC for any claims costs up to the chosen deductible level. BWC sends the employer monthly bills for the claims costs occurring during the policy year of participation. You will continue to be billed by BWC until the deductible level has been reached for each claim. Deductible bills must be paid within 28 days of the invoice date.

Applying your Discounts

BWC determines your level of discount based on your chosen deductible level and National Council on Compensation Insurance (NCCI) hazard group determined using your primary manual classification. The discount for base-rated employers is applied directly to the base rate established for the policy year. The discount for experience-rated employers is calculated after BWC establishes the modified premium rate and prior to any other premium discounts. Administrative costs and Disabled Workers' Relief Fund assessments are not included in the discount.

Continuing Participation

Each year, BWC will automatically renew eligible employers at their current deductible level. If any employer wants to change their deductible level, the employer must re-submit the U-148 application. To leave the program, an employer must submit a Deductible Program Withdrawal Form (U-152). It is important to note that once BWC approves an employer's participation in the program, you cannot withdraw or make changes to your deductible level until the next policy year.