The Ohio Workers’ Compensation system is very complex, and often difficult to navigate without an experienced advisor. CareWorks Consultants, Inc. (CCI) works with over 30,000 Ohio businesses to find the best program to meet their unique business needs and provide them with the lowest cost. Today’s programs include:
Base Rating
Base-rated employers pay their workers’ compensation premiums according to the base rates established by BWC for each manual classification. Base rating allows employers to pay workers’ compensation premiums based on the average costs of claims filed against all employers in like industries, utilizing the same manual employee classifications.
Experience Rating
Experience-rated employers can be credit-rated or penalty-rated, depending on the claims cost record of their particular business. Employers who qualify for experience rating are usually larger, with expected losses of $8,000 or more. An experience-rated employer with a better-than-average loss experience, compared to others in the same classification, will receive a credit and pay a rate lower than the base rate. An experience-rated employer with a higher loss experience, compared to others in the same classification, will be penalized and pay a rate higher than the base rate.
Group Rating
Group rating allows employers operating similar businesses to group together to achieve lower premium rates than they could individually. Each group is sponsored by an organization, such as a trade association or chamber of commerce. The sponsoring organization forms the group based on eligibility requirements. BWC publishes rates for the group members, as if the group were one large company, allowing group participants to achieve a credit and pay a rate lower than their individual rate.
Group Retrospective Rating
These are performance driven employer groups. Employers receive premium rebates or assessments based on results of safety & cost control efforts. While this program provides the potential for premium savings, employers will share a predetermined level of risk (assessments) with other plan participants.
Deductible Program
This program offers an up-front discount on employer premium rates in exchange for accepting the financial obligation, up to the deductible amount chosen, of any new claim incurred during the policy year enrolled. The program is set up to create incentives to promote workplace safety and pro-active claims management. The deductible options range from $500 to $10,000 per claim.
100% Experience Modifier (EM) Cap
Employers will have 2009 policy period premium increases limited or capped at 200%. In other words, an employer’s premium can no more than double from one policy year to the next. The BWC will automatically apply this cap to any employer with an EM of 1.01 or greater for the 2009 policy year. In addition to the penalty EM, employers must adhere to BWC’s 10 Step Business Plan in order to take advantage of the cap.
Retrospective Rating
A retrospective-rated employer assumes a portion of the risk in return for a possible reduction in premiums. The greater the assumed risk, the greater the potential reduction in premiums. Employers can customize the retrospective rating plan to control the amount of risk assumed and the potential savings by selecting the maximum premium and maximum claims costs they are willing to pay. Employers with a consistent claims history and proven safety practices may benefit from retrospective rating.
Self Insurance
Self-insured employers administer their own workers’ compensation claims. Self-insured employers must abide by BWC’s and the Industrial Commission’s rules and regulations to provide accurate and timely payments of compensation and benefits to their injured employees. Self-insured employers pay benefits directly to their injured employees and service providers, and do not pay BWC workers’ compensation premiums. In order to be granted self insurance, an employer must meet several requirements, including workforce size and financial stability.
