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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.
The self-insured department has developed an online tutorial for new self-insuring employers, new SI administrators or prospective applicants. It's
also available to any current self-insuring employer or authorized representative. If you'd like to access this tutorial please follow these
instructions.
To view the latest information on a particular topic, click on any of the links 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's a minimum balance
and to guarantee payments of claims against the fund. We've listed the 2012 rates beside the 2011 rates
as a comparison below.
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| Assessment description
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Policy year
2011 rate
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Policy year
2012 rate
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| Surplus Fund (mandatory)
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.03000
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.06900
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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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.07500
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.07250
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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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.00000
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.00000
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| Guaranty Fund
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.05270
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.04000
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| Surplus Fund (disallowed claims reimbursement)
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.03340
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.03000
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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 has been working with the self-insured community on changes for determining amounts required to
secure obligations for SIEGF. You can find a detailed description of these changes in 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 2011 compilation include the following facts and figures:
- Self-insuring employers cover 1.9 million Ohio workers;
- Reported claim counts have decreased 22.1 percent since 2007 while active SI employees has remained
relatively unchanged;
- Total compensation payments were down 7.7 percent in 2011;
- Total benefits paid are down 5.5 percent from 2010.
You can view the compiled data from 2007 through 2011 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.
Self-insuring workshops
The BWC self-insured department is hosting quarterly workshops for self-insuring employers or their authorized representatives. Each workshop covers a specific topic(s) relevant to the administration
of your self-insurance program. You can download the PowerPoint slides for any of the previous workshops here.
Re-orientation - September 2012
Permanent total disability - March 2013
If you have any questions related to these workshops, contact the self-insured department.
Resources
Repayment options for lump sum advancements
Permanent Total Disability (PTD) rate calculation worksheet - Instructions
PTD rate calculation worksheet
