BWC is changing the way it bills for workers’ compensation coverage to better serve Ohio employers.
For decades, the agency has billed for employer premiums after-the-fact. It will begin billing in advance of coverage starting:
- July 1, 2015 for private employers
- Jan. 1, 2016 for public employers
This change will align BWC with standard industry billing practices.
Due to the switch to prospective billing, a number of deadlines for plan and program sign-ups are changing as well. Among them is the snapshot date for experience calculation:
- Sept. 30, 2014 for private employers
- March 31, 2015 for public employers enrolling for the 2016 policy year
Here’s a breakdown of other key date changes:
- Group experience rating:
- Nov. 24, 2014 for private employers
- May 29, 2015 for public employers
- Group-retrospective rating, Deductible Program, Individual-retrospective rating, One Claim Program:
- Jan. 30, 2015 for private employers
- July 31, 2015 for public employers
- Destination Excellence:
- May 29, 2015 for private employers
- Nov. 30, 2015 for public employers
Benefits of prospective billing include reduced overall systems costs for the agency, and in turn, an expected overall base rate reduction of 2% for private employers and 4% for public employers. It will give BWC an increased ability to detect non-compliance and fraud, which will lead to long-term savings. Also, more flexible payment options will be available with prospective billing – up to 12 installment payments instead of semi-annual billing.
The transition won’t cost Ohio employers any extra money. BWC will provide a one-time, $1.2 billion premium credit to eliminate the need for double payments during the transition.
Check out the BWC’s prospective billing fact sheet for more information.
Arthur W. Brumett II, Esq. ABrumett@WickensLaw.com
Kelly Fraatz, Paralegal KFraatz@WickensLaw.com