Media Advisory: Feb. 20, 2009

BWC Board of Directors Approves New Deductible Program

New Program Expected to Help Ohio Employers Better Manage Workers’ Comp Costs

COLUMBUS – Ohio employers will soon have another option for controlling costs while protecting their workforce following today’s approval by the Ohio Bureau of Workers’ Compensation (BWC) Board of Directors to create a new deductible program. The deductible program, the first-ever for BWC, will give employers better control of their workers’ compensation insurance spending and provide an incentive to promote workplace safety programs and services.

“This is the first time Ohio employers will have the option to enroll in a true deductible program,” said BWC Administrator Marsha Ryan. “This new program offers multiple deductible levels, giving Ohio employers a choice in securing the option that best suits their business needs.”

Under the deductible program, an employer agrees to pay the portion of a claim that falls below the deductible level. For taking on this degree of risk, the employer will receive a premium discount. The program will offer five deductible levels from $500 up to $10,000 per claim, and additional deductible levels and structures will be considered in future years. The deductible program will be available to employers beginning July 1, 2009.

The Board also approved rule changes that will give BWC more authority to ensure sponsoring associations comply with the statutes and rules governing the group rating program. The changes include: requiring greater disclosure from group sponsors; mandating that all sponsors reapply for certification before becoming eligible to sponsor groups for group retrospective rating beginning July 1, 2009 and/or group rating beginning July 1, 2010; and instituting a re-certification process to ensure all group sponsors are evaluated by BWC on a regular basis.

In other business, the Board asked BWC staff to continue its efforts toward ensuring an actuarially sound rate system that will provide greater equity between the amount group-rated and non group-rated employers pay in workers’ compensation premiums. Staff was also asked to continue to solicit input from these employer groups and present a modified plan in the future that does not include elimination of programs including Drug Free Workplace and Safety Council discounts.

On Thursday, the Board of Directors hosted a public forum providing an opportunity for Ohio business owners, medical providers, stakeholders, injured workers and other interested parties to address the Board on any issue concerning the BWC’s operations and programs. A number of speakers discussed how premium rates impact their business.

“We find these public forums to be very valuable,” said Chairman Bill Lhota. “Hearing directly from the employer and injured workers of the state of Ohio is essential to the work of this Board.”

The next Board of Directors meeting will be held Friday, March 20, 2009, at 8 a.m. in Room 3, Level 2 of the William Green Building, located at 30 W. Spring St., Columbus.