Workers’ Compensation Sign-Up Deadlines Changing

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.

If you have questions about prospective billing, call your local BWC service office or email the BWC’s prospective billing mailbox at BWCProspectiveBilling@bwc.state.oh.us.

 

Ohio Bureau of Workers’ Compensation – Prospective Timelines PA

Ohio Bureau of Workers’ Compensation – Prospective Payment

 

Arthur W. Brumett II, Esq.   ABrumett@WickensLaw.com

Kelly Fraatz, Paralegal   KFraatz@WickensLaw.com