As the Ohio Bureau of Workers’ Compensation (BWC) begins its transition to a prospective billing system, it has announced the first changes to be made in order to implement this new system, which involves the enrollment deadlines for premium discount programs.
“In order to implement prospective billing, BWC has created earlier deadlines to sign up for incentive/discount programs,” says John Logue, vice president at CompManagement, Inc. “Employers will have to make their selections sooner than normal as the transition becomes effective July 1, 2015, for private employers and Jan. 1, 2016, for public employers.”
Smart Business spoke with Logue to determine when employers need to be prepared to act this year and next so that they do not miss the opportunity to reduce their annual workers’ compensation premium.
When do private employers need to act for their upcoming policy year?
Private employer deadlines for the 2015 policy year, which is the first year impacted by prospective billing, have been moved up about three months in advance of normal:
- The group rating deadline has been changed to Monday, Nov. 24, 2014. It was previously the last business day of February.
- The group retrospective rating/other alternative rating program deadlines are Friday, Jan. 30, 2015. They had previously been the last business day of April.
- Destination excellence program deadlines are Friday, May 29, 2015. These have moved from the last business day of April.
Are there other deadline changes outside of the premium discount programs for private employers this year?
Settlement applications (C240 forms) for private employers are due Tuesday, July 15, 2014, for any settlements that are to be applied to the 2015 experience. Previously, this deadline was Oct. 15.
What changes occur this year for public employers?
Enrollment deadlines for public employers do not change for the Jan. 1, 2015, policy year. Employers should enroll by the following deadlines this year:
- Group rating: Friday, Aug. 29, 2014.
- Group retrospective rating/other alternative rating programs: Friday, Oct. 31, 2014.
- Destination excellence programs: Friday, Oct. 31, 2014.
What changes should public employers be aware of for the 2016 policy year?
Public employer deadlines for the 2016 policy year, which is the first policy year impacted by prospective billing for this employer population, are as follows:
- The group rating deadline will be Friday, May 29, 2015, moved up from the last business day of August.
- Group retrospective rating/other alternative rating programs will be Friday, July 31, 2015. Previously, the deadlines were the last business day of October.
- Destination excellence program deadlines are Monday, Nov. 30, 2015, moved from the last business day of October.
- Settlement applications (C240) are due Monday, Feb. 16, 2015, for settlements to be applied to the 2016 experience. This was previously May 15.
With the implementation of prospective billing and change to enrollment deadlines, will employers end up having two payments at once?
To eliminate having to pay two semi-annual premium payments during the transition, one-time premium credits will be given by BWC to help offset the transition to prospective billing from the current ‘in arrears’ reporting. Private employers will receive a full credit to their final in arrears premium payment due in August 2015, which is payroll between Jan. 1, 2015, and June 30, 2015, and a two-month or 1/6 credit for the first prospective payment for payroll between July 1, 2015, and June 30, 2016. Public employers will receive a 50 percent credit on their May 2016 premium payment, based on 2015 payroll, and a 50 percent credit on their first prospective payment, based on 2016 payroll.
Insights Workers’ Compensation is brought to you by CompManagement Inc.