Overview
BWC's Deductible Program helps employers lower their premiums by offering an upfront premium discount in the form of a per claim deductible. It also encourages employers to focus on workplace health and safety to reduce injuries and illness.

Employers who effectively manage their workers’ compensation claims and related costs will see a financial benefit. However, if an employer does not manage claim costs, the deductible can exceed premium savings.

Eligibility requirements
We will review all applications to determine eligibility and accept only those employers who qualify. To participate, your organization must:

• Be a private, state-fund employer or a public employer taxing district.
  Note: Self-insuring employers and state agency public employers are not eligible to participate;
• Be current on all premium payments and deductible billings at the time of you apply;
• Be in good standing at the time you apply;
• Have active coverage by the application deadline;
• Not have cumulative lapses in coverage in excess of 40 days within the 12 months preceding the application deadline;
• Meet a required credit score.

Deductible levels
When you apply, choose a deductible level appropriate for your business. However, your deductible level cannot exceed 25 percent of your premium in a policy year. You will be responsible for claim costs up to the deductible level for any claim that occurs in the policy year of enrollment.

• $500 per claim
• $1,000 per claim
• $2,500 per claim
• $5,000 per claim
• $10,000 per claim

Deductible billing structure
We will pay claims costs in full. You will then reimburse us for any claim costs up to the deductible level you have chosen. We'll send you monthly bills for the claim costs that occur during the policy year of participation. We will continue to bill you until you've reached your selected deductible level. You must pay all deductible bills within 28 days of the invoice date. If you do not make timely payments, we will refer you to our collections department. You can pay online or mail it to us.

Discount calculation
We will determine your level of discount based on your chosen deductible level and National Council on Compensation Insurance (NCCI) hazard group. We determine the NCCI hazard group using your primary manual classification.

For base-rated employers, we will apply the discount for participation directly to the base rate established for the policy year. We will calculate experience-rated employers’ discounts after we establish the modified premium rate. We will do this before we calculate any other premium discounts. We will not include administrative costs and Disabled Workers’ Relief Fund assessments in the discount. Remember, we will include all claim costs in your experience-rate calculation.

Application and enrollment
You must submit an Application for Deductible Program (U-148) online, by fax or by mail. The application form includes the fax number and BWC mailing address. NOTE: The application will be available beginning April 1.

You'll see the enrollment and coverage periods below.

• Enrollment period
• Private employers - April 1 through May 31
• Public employer taxing districts - Oct. 1 through Nov. 30
• Coverage period
• Private employers - July 1 through June 30
• Public employer taxing districts - Jan.1 through Dec. 31

Renewals
We will automatically renew eligible employers at their current deductible level. If employers want to change their deductible level, they simply re-submit the U-148 during the enrollment period.

We will conduct mid-term reviews to determine continued eligibility. If an employer fails to meet program requirements, we can revoke eligibility for the second half of the policy year. If this happens, BWC will send a 30-day notice to the employer.

Cancellation of participation
Once we approve your participation and the policy year begins, you cannot withdraw or make changes to your deductible level. You must wait until the next policy year to make those changes.

To leave the program in the upcoming policy year, you must submit a Deductible Program Withdrawal Form (U-154). After we receive the form, we will remove you from the program for the next policy year.

Compatibility with other BWC programs
While participating in the Deductible Program, you cannot participate in the programs listed below for injuries that occur during that policy year.

• Group retrospective rating plan
• Individual retrospective rating plan
• Salary continuation
• $15,000 Medical-Only Program

Questions or feedback
If you have questions or comments about the program, call our employer programs unit at 614-466-6773, or send an e-mail.

Resources

• Eligibility level look-up
• Application for Deductible Program (U-148)
• Administrative rules

Online services

• Monthly billing statement
• Claim payment transactions - policy
• Individual claim payment transactions