Media Advisory: April 22, 2009

BWC Now Accepting Applications for New Deductible Program

COLUMBUS – Ohio’s private employers have until May 31 to sign-up for the Ohio Bureau of Workers’ Compensation’s (BWC) new deductible program. The program is designed to give employers better control of their workers’ compensation insurance spending and serves as an incentive to enhance workplace safety. The deductible program was approved by the BWC Board of Directors in February, and goes into effect on July 1, 2009.

“We’re pleased to offer Ohio’s first-ever, true deductible program for workers’ compensation insurance,” said BWC Administrator Marsha Ryan. “The new BWC deductible program will help Ohio employers better manage their out-of-pocket workers’ compensation costs, and should provide them with additional motivation for improved workplace safety.”

Similar to other insurance deductible plans, an employer agrees to pay the portion of a workers’ compensation injury claim that falls below their selected deductible level. For taking on this degree of risk, the employer will receive a premium discount. The program will initially offer five deductible levels from $500 per claim, to up to $10,000 per claim. As with other insurance deductible plans, the higher the selected deductible level, the more savings the employer can expect in their workers’ compensation premium. Additional deductible levels and structures could be considered in future years.

Public employer taxing districts are eligible to participate in the deductible program. The public employer taxing district deductible program will begin January 1, 2010. The enrollment period for public employer taxing districts will begin October 1, 2009 and run through November 30, 2009.

Employers can submit an application for the BWC deductible program at ohiobwc.com. Questions or comments about the BWC deductible program can be directed to 1-800-OHIO-BWC or the BWC employer program unit at 614-466-6773 or deductibleprogram@bwc.state.oh.us.

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