Over half of Ohio’s private employers will not be in a group rating program effective July 1, 2010. If you are one of these employers, you will have an array of alternative rating programs to consider. This article is the last part of a series designed to give an overview of these programs and help you decide which programs you should evaluate further.

100% EM Cap Program (100% Cap) – Application deadline – September 30, 2010
This program is ideal for many employers that participated in group rating in 2009 but no longer qualify for 2010. Moderate to significant premium discounts are provided in exchange for safety program improvements. The EM% or “experience modifier” determines an employer’s premium rates. An employer’s EM% increases when they experience more claim costs than the BWC expects. Losing group rating eligibility often results in a significant EM% increase. In this program, the employers 2010 EM% will be capped at a 100% increase (doubling of) the July 1, 2009 published EM%. The 100% EM Cap program often offers employers the greatest relief to their increasing premium rates because the employer no longer qualifying for group rating can experience premium rate increases greater than 100%. The cap controls the increase. The employer’s EM for 2010 before the cap must be 1.01 or higher (debit rated) to qualify. Very small employers do not qualify for the program. Qualifying employers must agree to implement portions of the BWC’s 10 Step Business Plan for Safety to maintain their cap. In year 1 of the cap, 5 of the steps must be implemented. If the cap benefits the employer for a second year, all 10 steps must be implemented. Participants for the 2010 policy year are required to report on their safety progress by March 31, 2011.

Safety Council Program (S.C.) – Application deadline – July 31, 2010
Employers enroll in this program directly with their local safety council and earn a 2-percent rebate for meeting all of the participation requirements and an additional 2-percent performance bonus for reducing either claims frequency or severity rates by 10 percent compared to the prior year, or by keeping either rate at zero. Participation requirements include attendance at 10 safety council meetings during the year, CEO attendance at one of the 10 meetings, and semi-annual reporting of injuries.

CareWorks Consultants (CCI) and RiskControl360 (RC360) fully understand these alternative programs and can help determine which of them best fit your unique circumstances. For more information call CCI toll-free at 1-800-837-3200 or RC360 at 1-877-360-3608 and ask to speak to someone in the Sales Department.