The BWC Switches to Prospective Billing
For the last several years, the Bureau of Workers’ Compensation has collected employers’ premium payments after the coverage period. The BWC switched to prospective billing on July 1, 2015 for public employers and on January 1, 2016, it will make the switch for private employers. In other words, the BWC will now require payment before it provides coverage.
To help facilitate the transition to prospective billing, the BWC is providing employers with an eight month premium credit. To qualify for the credit, employers must be in active, reinstated, or debtor-in-possession status by the time prospective coverage starts. That means employers whose coverage has lapsed should take steps to remedy non-active status, including reporting payroll for currently lapsed payroll periods, paying any outstanding premiums (including late fees), or requesting a payment plan for premiums that cannot be paid in full.
Public employers specifically must be in active status by January 1, 2016 to receive a transition credit. Public employers will receive their 2015 payroll report along with a 2016 invoice in March of 2016. The invoice will contain a 50% credit for both the 2015 and 2016 premiums. Public employers will need to pay at least 50% of their annual premium for both 2015 and 2016 by May 2016.
BWC Releases Employer-Positive Statistics
In August, the BWC released statistics highlighting many of the successes of recent reforms. Since 2011, private employers have seen their average base rates drop by more than 21% and public employers have correspondingly experienced nearly a 20% reduction in rates. The BWC during that same time frame experienced a significant drop in new workers’ compensation claims.
There are several programs the BWC makes available to employers that could further reduce base-rates and premiums. Non-group rated employers are eligible for a 2% discount for participating in Safety Council Programs and both group and non-group employers can receive a 2% rebate for improving employee safety. The BWC recently created the Destination: Excellence program, which further rewards employers for creating safer work places. Employers can receive a further reduction in their rates by instituting drug-free workplace policies under R.C. § 4123.52.
FHKA has vast experience in advising and defending employers in front of the BWC, Industrial Commission, and the courts on workers’ compensation matters. FHKA writes and reviews workplace policies for public and private sector employers throughout Ohio.