Ohio BWC Implements Prospective Billing System

Currently, Ohio employers pay workers’ compensation premiums to the Ohio Bureau of Workers’ Compensation (BWC) for the retrospective six-month period.  Effective July 1, 2015, the BWC is changing the billing structure to a prospective payment process.

To avoid billing Ohio employers, the BWC will apply a one-time transition credit in July 2015, covering the last six month retrospective payroll period plus an additional two months going forward.  The transition credit will cover the premium for the period of January 1, 2015 through August 31, 2015.  Although a transition credit will be applied, employers will still make a premium payment, using estimated payroll, in August 2015 for the prospective rating year (July 1, 2015 through June 30, 2016).

The prospective payment process will create many changes to the current system including the deadlines for renewing/enrolling into group ratings programs.  Several of the changes employers should expect to see in the upcoming months are:
  • Group rating program rosters will be filed on the fourth Monday in November, beginning in 2014
  • Group retrospective, One Claim Programs, 100 EM Cap, Deductible and individual retrospective rating program rosters and applications will be filed on January 31, beginning in 2015
  • Destination:  Excellence programs will be filed on May 30, beginning in 2015
Employer Program Changes
  • Private employers must start the Drug Free Safety Program on July 1
  • Lapse-free and Go-Green discounts will be issued at the time of true-up
  • Program bonuses will be issued after true-up is finalized
  • Lapse-free discount will be compatible with group retrospective rating
Changes for 2015 and Beyond
  • First prospective payment for the period of July 1, 2015 – June 30, 2016 is due in August 2015 (calculated using historical payroll data from the most recent policy year)
  • Payroll report due August 31, 2015 for January 1, 2015 through June 30, 2015 (BWC will pay premiums)
  • Employers must “true-up” (report actual payroll) and pay any additional premiums (or receive credit) by August 15, 2016
  • Outstanding true-ups as of September 15, 2016 will result in immediate disqualification from rating plans and programs (including Destination:  Excellence programs)
  • BWC will estimate true-ups for any employer failing to report actual payroll and certify it to the Attorney General’s Office (coverage will not lapse, but as previously stated, you could be removed from programs)
  • If actual payroll substantially exceeds the estimated payroll, BWC may assess a penalty
  • Employers will receive an invoice for the policy period of July 1, 2016 – June 30, 2017 in June of 2016 with payment due by July 1, 2016
Additional Information
  • Beginning September 2015, employers paying more than the $120.00 minimum will have one, two, four and 12-pay options
  • Coverage will lapse for employers who do not pay the installment due July 1, 2016 or future installments
  • FlexPay option ended July 1, 2014
  • Final 50/50 payment is due November 1, 2014