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OhioBWC - Employer: (Self-Insuring Employer Update)
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Self-Insuring Employer Update
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Self-insuring employers should visit this page regularly. Here you'll find the latest information about
topics that impact your company's workers' compensation program. To view the information, click on
one of the topics below.
NOTICE: The Medicare, Medicaid and SCHIP Extension Act of 2007 will become law Jan. 1, 2011. This
law contains new and strict provisions amending the Medicare Secondary Payer Statute. In particular,
these provisions impose reporting requirements upon liability insurance plans (including self-insurance),
no-fault insurance plans and worker’s compensation plans. If you're currently paying workers’ compensation
benefits, click on the link below for additional information.
Letter to SI employers
Assessment rates
BWC evaluates the self-insuring employers’ assessment rates annually to make sure there is a minimum
balance, and to guarantee payments of claims against the fund. We have listed the 2011 rates beside the
2010 rates as a comparison in the table below.
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| Assessment description
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Policy year
2010 rate
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Policy year
2011 rate
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| Surplus Fund (mandatory)
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.03000
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.03000
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| Administrative Cost Fund (BWC)
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.08890
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.08890
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| Administrative Cost Fund (IC)
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.07980
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.07500
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| Division of Safety & Hygiene
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.00500
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.00500
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| Surplus Rehabilitation Fund
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.13000
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.13000
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| Surplus Handicap Fund
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.24800
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.24800
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| Administrative Cost Fund (WCC)
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.00001
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.00000
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| Guaranty Fund
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.11540
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.05270
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| Surplus Fund (disallowed claims reimbursement)
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.02780
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.03340
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Changes in the rates are a function of paid compensation reported by self-insuring employers and costs
paid on behalf of self-insuring employers. The assessments based upon these assessment rates are
paid in February and August each year.
Comprehensive study update
In April 2009, Deloitte Consulting, LLC delivered its Comprehensive Study of the Ohio Bureau of Workers'
Compensation. We are evaluating each recommendation offered in the study. Included were 18 recommendations
specific to the self-insurance program and the Self-Insured Employers’ Guaranty Fund (SIEGF).
We are also working with a representative group of self-insuring employers to evaluate Deloitte's
recommendations on securitization, claims management, policy development and governance issues.
While we continue to analyze the data, we are implementing some of the recommendations and making
decisions related to others. The collection of outstanding case reserve data is a recommendation that we
implemented in January 2010. We have carefully analyzed group self-insurance and acquiring excess
insurance for self-insuring liabilities, and have determined we will not adopt them at this time.
A complete list of the recommendations related to the self-insurance program is available upon request by
e-mailing SIINQ@bwc.state.oh.us.
SIEGF
BWC reviews every self-insuring employer on a regular basis to evaluate the total liability presented
to the Self-Insuring Employers’ Guaranty Fund (SIEGF). Based on this risk, we may request additional
security in the form of a letter of credit. The methodology used to determine risk is primarily through
an evaluation of an employer's financial and claims risk, and administrative ability as described in
rule 4123-19-03 of the Ohio
Administrative Code. You can find a detailed description of this risk assessment through the
securitization methodology update.
Facts and figures
Each year, self-insuring employers submit a Report of Paid Compensation and Statistical Information (SI-40).
Highlights from the year-end 2010 compilation include the following facts and figures:
- The number of SI-40s received in 2010 decreased slightly from 1,374 to 1,301;
- Self-insuring employers cover 1.9 million Ohio workers;
- Reported claim counts have decreased 26.5 percent since 2006 while active SI employees has remained relatively unchanged;
- Total compensation payments are down 14.8 percent in 2010;
- Total benefits paid are down 8.9 percent from 2009.
You can view the compiled data from 2006 through 2010 by clicking
here.
Help us keep your e-mail address and contact information up to date. Review or update your demographic
information by clicking here.
