OhioBWC - Employer: EM capping

OhioBWC - Employer: EM capping

EM capping

We have introduced a program that will cap an individual employer’s experience modifier (EM) to minimize the effects of a significant premium increase for employers that become penalty rated.

The EM cap will equal 100 percent of the previous year’s published EM. The previous year’s EM could be an individual EM or group EM if the employer was participating in a group-rating plan that year.

Eligibility criteria

Individual EM for the current policy year of 1.01 or higher (debit rated)
No more than 40 days of lapsed coverage within 12 months prior to the June 1 preceding the rating year
Example: If the rating year starts July 1, 2009, employers cannot have more than 40 lapsed days between June 1, 2008, and June 1, 2009
Not more than 45 days past due on any premiums, including retrospective rating billings
In the first year, agree to complete steps one, two, six and any other two steps of the 10-Step Business Plan for Safety as outlined in the Ohio Administrative Code (4123-17-70)
Note: Eligible employers who want to keep the EM cap for the subsequent year must complete the remaining steps of the 10-Step Business Plan for Safety in that second year.

The cap does not apply to employers whose EM is calculated with more than one policy’s experience. Additionally, we will determine cap eligibility prior to the beginning of the policy year. As a result, any adjustments will not remove the cap or allow an employer to be cap eligible.

All eligible employers must complete and return to us an Agreement for 100-percent EM Cap (U-18) by Sept. 30 to indicate whether they plan on participating in the 100-percent EM cap. If you do plan participate, you must indicate who you will work with to ensure compliance with requirements, either a BWC representative or BWC-certified, 10-Step Business Plan for Safety sponsor. If you fail to comply with the requirements or do not wish to participate, we will calculate your premium rates using your uncapped EM for the policy year.