OhioBWC - Home: Current News

OhioBWC - Home: Current News

For immediate release: Feb. 26, 2010

BWC Board of Directors Review Options for Enhanced Drug-Free Safety Program

COLUMBUS – The Ohio Bureau of Workers’ Compensation (BWC) Board of Directors received details of proposed rules for the newly developed Drug-Free Safety Program (DFSP) designed to promote the health of Ohio’s workforce by preventing workplace injuries attributed to the use or abuse of drugs. Plans are underway to sunset the current Drug-Free Workplace Program and replace it with DFSP to by July 1, 2010. The changes were called for in the recent comprehensive study of Ohio’s workers’ compensation system and a collection of safety and business professionals have studied ways to enhance the past program and improve that program’s effectiveness in preventing substance abuse-related injuries.

“A solid substance abuse program in the workplace is essential to preventing injuries and limiting associated increases in workers’ compensation premiums,” said BWC Administrator Marsha Ryan. “The comprehensive study performed by Deloitte Consulting, Inc. clearly demonstrates the need for a redesigned program that is more consistent with similar programs in other states and places a greater emphasis on maintaining drug-free work environments through safety and prevention.”

The Drug-Free Safety Program simplifies the process for employers to join and implement a program that will provide measurable results by tracking drug or substance abuse related accidents. The restructured program offers two levels of participation, basic and advanced, and offers premium discounts in the range of four-to-seven percent.

The new program features streamlined safety components that meet the needs in the workplace without overburdening Ohio employers. In addition, the new program is expected to allow some small discount stacking for group employers participating at the advanced level. The board is expected to make a final vote on the DFSP when it meets again on March 26.

In other business, the board of directors voted to modify rules related to the experience modifier (EM) cap program allowing the 100 percent cap on premium increases to continue from year to year. The EM capping program limits extreme premium swings for employers in the event of a serious accident or loss of a group-rated premium. Employers in this program must participate in the Ten Step Business Plan for Safety, which will help them improve their own efforts to maintain safe workplaces. There is no fee to enroll in the 100-percent EM capping program and no need for employers to pay a third party to qualify or become eligible for this program. Interested employers are encouraged to speak with their BWC representative or visit ohiobwc.com to learn more.

Finally, the board hired State Street Global Advisors and BlackRock Institutional Trust Company as passive index managers for the Disabled Workers’ Relief Fund (DWRF) and Coal Workers’ Pneumoconiosis Fund (CWPF). The DWRF is a supplemental fund established to provide relief to an injured worker who is receiving permanent and total disability compensation benefits adjusted to cost of living increases. The invested assets of the DWRF total $1.2 billion. The CWPF provides benefits to employers with claims related to employee exposure to coal dust. Total invested assets for this fund total $250 million.

Following today’s regular monthly meeting, the Board of Directors hosted its quarterly public forum. The forum was an open discussion with representatives of the Managed Care Organization (MCO) League of Ohio. Directors discussed successes and challenges related to BWC’s coordination with MCOs through the Health Partnership Plan in facilitating rapid treatment for injured workers and providing medical case management services to Ohio employers.

“In Fiscal Year 2009, MCOs served more than 200,000 employers across the state and processed more than $600 million in payments toward the care of injured workers,” said Board Chairman Bill Lhota. “They are a critical component of the workers’ compensation system and we value this opportunity to discuss the issues that will help enhance our partnership in delivering the highest quality medical care for injured workers.”

Much of today’s discussion with the MCO League of Ohio centered on program enhancements, administrative and legislative barriers within the current structure, and recommendations for system improvements. Due to the length of today’s forum, the board will reconvene its discussion with the League at the next public forum scheduled for April 30.

A photo of today’s public forum is available here.

The next meeting of the BWC Board of Directors will be Friday, March 26, 2010 at 8 a.m. in Room 3, Level 2 of the William Green Building, located at 30 W. Spring St., Columbus.

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