The Ohio Bureau of Workers’ Compensation (BWC) currently collects premium after extending coverage to an employer — i.e. in arrears or retrospective billing. By transitioning to a prospective billing system, the BWC will align with a standard industry practice enabling it to collect premiums before extending coverage. This change will have an impact on many of the key dates for Ohio employers that have been the same for a number of years.
Smart Business spoke with Lisa O’Brien, director of rates and underwriting services at CompManagement, Inc., about upcoming changes that could impact an employer’s coverage status or alternative rating program eligibility, costing them potential savings.
Who will be impacted by the changes?
Prospective billing becomes effective July 1, 2015, for private employers, so they will see changes first. Public employers will not switch to this new billing practice until the Jan. 1, 2016, policy year.
What is the timeline for private employers?
These are the enrollment deadlines for Alternative Rating Programs in the 2015 policy year:
- Nov. 24, 2014 — Group Rating.
- Jan. 30, 2015 — Group Retro, One Claim, Individual Retro and Deductible.
- May 29, 2015 — Destination Excellence.
What are the private employer payroll and premium reporting deadlines?
Payroll and premium reporting during calendar year 2015 are as follows:
- March 2, 2015 — Payroll due for July 1, 2014, to Dec. 31, 2014.
- May 1, 2015 — Policy year 2015 estimated premium notice will be mailed by BWC.
- June 1, 2015 — Policy year 2015 premium invoice will be mailed by BWC for first prospective installment. BWC will pay as part of transition credit.
- July 1, 2015 — Payroll reports will be mailed by BWC for Jan 1, 2015, to June 30, 2015.
- Aug. 1, 2015 — Policy year 2015 premium invoice will be mailed by BWC for second prospective installment.
- Aug. 31, 2015 — Payroll report due for Jan. 1, 2015, to June 30, 2015. No payment will be due for this payroll report as BWC will pay with transition credit. Second prospective installment is due for 2015 policy year. Bi-monthly installment payments will continue through April 2016.
What is the timeline for public employers?
Enrollment deadlines for the Alternative Rating Programs for the 2016 policy year are:
- May 29, 2015 — Group Rating.
- July 31, 2015 — Group Retro, One Claim, Individual Retro and Deductible.
- Nov. 30, 2015 — Destination Excellence.
What are the public employer payroll and premium reporting deadlines?
Payroll and premium reporting during calendar year 2016 are as follows:
- March 31, 2016 — Policy year 2015 payroll report and policy year 2016 premium invoice will be mailed by BWC.
- May 15, 2016 — Policy year 2015 payroll report and 2016 premium invoices are due. Both will be discounted by 50 percent as part of the transition credit by BWC.
- Sept. 1, 2016 — Balance of policy year 2015 and 2016 premium are due. They will be discounted by 50 percent as part of the transition credit by BWC.
- Nov. 1, 2016 — Policy year 2017 estimated premium notice will be mailed.
- Dec. 1, 2016 — Policy year 2017 premium invoice will be mailed.
- Dec. 31, 2016 — Policy year 2017 first prospective installment is due. Employers may opt to defer payment until April 30, 2017.
With the change to how premium is billed, will an organization be able to make installment payments?
In the first prospective year, BWC will invoice and require private employers to follow a bi-monthly payment schedule.
Public employers will be invoiced monthly starting with the 2017 rating year. In subsequent years, employers will have other installment options that include: monthly, bi-monthly, quarterly, bi-annually or annually.
Insights Workers’ Compensation is brought to you by CompManagement, Inc.