Strengthening Ohio’s Workers’ Compensation

System

2

Group-rating rules

Meetings 1 and 2 – Global issues impacting employers (self-insuring employers excluded)

Meeting 3 – Group employers only Today’s meeting – Operations of group rating

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Group-rating rules

How the process will work: Review BWC and stakeholder feedback to this point;

Establish rule revision schedule; Work with individual stakeholders to implement rule revisions per established schedule.

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Group-rating program components

BWC discussion points – size of employers in group and size of group

Allowing only employers of a certain size limit to participate in group rating would follow the original intent of the program. It also would allow them to earn a premium discount greater than they could on their own. 

Removing or modifying the current statute specifying that groups must have 100 members or $150,000 in annual premium could permit a wider variety of choices and options for employers eligible for group rating.

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Group-rating program components

BWC discussion points – safety parameters and requirements

Establishing more specific requirements for groups to encourage workplace safety could have a positive impact on loss ratios that is not currently being seen in the data. Specific requirements and mandates could produce positive results for groups in accident prevention and premium stability.

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Group-rating program components

BWC discussion points – sponsorship and marketing

Establishing rules for group sponsorship and setting parameters on marketing of group rating could enhance the quality and caliber of group sponsors, while also providing an appropriate level of protection for consumers.

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Group-rating program components

BWC discussion points – mergers, acquisitions and successorship of group employers

In a situation when a purchased company’s claim and payroll experience is transferred or combined (partially or totally) into the group-rating employer’s policy, which can sometimes result in negative impact on all of the employers in that specific group.

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Stakeholder suggestions received

Marketing Savings estimates must include appropriate disclosures. Marketing material must include the name of the sponsoring

organization. BWC would track and publish group EMs vs. actual group

discounts via a group-rating association/TPA report card. Letters notifying an employer that it does not qualify for

group re-enrollment due to loss history would highlight alternative BWC programs that are available to help offset premium increases.

Group marketing materials must clearly explain BWC group-rating enrollment deadlines.

Requirements set to allow an employer to withdraw without penalty from a group until 20 days prior to the group-rating deadline. (Including refunds of any fees paid and release from contract).

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Stakeholder suggestions received 4123-17-12 (catastrophe claims) and the entire adjudicating committee appeal process;

4123-17-59 ($5K Medical-Only Program) also needs

to be updated and modified; BWC's audit on salary continuation and the recommendations need to be implemented immediately;

Successorship of policies enrolled in the group rating program;

Fraud provision extended or eliminated. The current provision only allows BWC to remove an employer that has “grossly misrepresented” itself through April 1 of the rating year.

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Other considerations

Require (with incentive) a reduction in frequency to remain a group sponsor.

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Next steps

Establish schedule for rule review/statutory changes;

Obtain feedback; Testimony; Individual stakeholder meetings.

Initiate rule/statutory change process.