PRESS RELEASE
CONTACT: FOR IMMEDIATE RELEASE
Kelly Mohr, Marketing Assistant
CareWorks Consultants, Inc.
614.526.7128 / 800.837.3200, ext. 7128
Additional alternative discount programs
Over half of Ohio’s private employers will not be in a group rating program effective July 1, 2010. If you are one of these employers, you will have an array of alternative rating programs to consider. This article is the last part of a series designed to give an overview of these programs and help you decide which programs you should evaluate further.
100% EM Cap Program (100% Cap) - Application deadline - September 30, 2010
This program is ideal for many employers that participated in group rating in 2009 but no longer qualify for 2010. Moderate to significant premium discounts are provided in exchange for safety program improvements. The EM% or “experience modifier” determines an employer’s premium rates. An employer’s EM% increases when they experience more claim costs than the BWC expects. Losing group rating eligibility often results in a significant EM% increase. In this program, the employers 2010 EM% will be capped at a 100% increase (doubling of) the July 1, 2009 published EM%. The 100% EM Cap program often offers employers the greatest relief to their increasing premium rates because the employer no longer qualifying for group rating can experience premium rate increases greater than 100%. The cap controls the increase. The employer’s EM for 2010 before the cap must be 1.01 or higher (debit rated) to qualify. Very small employers do not qualify for the program. Qualifying employers must agree to implement portions of the BWC’s 10 Step Business Plan for Safety to maintain their cap. In year 1 of the cap, 5 of the steps must be implemented. If the cap benefits the employer for a second year, all 10 steps must be implemented. Participants for the 2010 policy year are required to report on their safety progress by March 31, 2011.
Safety Council Program (S.C.) - Application deadline - July 31, 2010
Employers enroll in this program directly with their local safety council and earn a 2-percent rebate for meeting all of the participation requirements and an additional 2-percent performance bonus for reducing either claims frequency or severity rates by 10 percent compared to the prior year, or by keeping either rate at zero. Participation requirements include attendance at 10 safety council meetings during the year, CEO attendance at one of the 10 meetings, and semi-annual reporting of injuries.
CareWorks Consultants (CCI) and RiskControl360 (RC360) fully understand these alternative programs and can help determine which of them best fit your unique circumstances. For more information call CCI toll-free at 1-800-837-3200 or RC360 at 1-877-360-3608 and ask to speak to someone in the Sales Department.
Individual Paid Loss Retrospective Rating - Application deadline - June 1, 2010
This program provides up-front premium discounts from 20% to 40% in exchange for assuming financial risk for new claims incurred during the policy year. Discounts vary considerably depending on the level of risk assumed. Qualifying employers should be willing to reimburse BWC for claim payments made for up to a ten year period in any new claim incurred during the paid retro policy year. Interested employers should have at least $100,000 of estimated annual premium and be able to supply audited financial reports for the past five years to show financial stability. BWC may require participants to implement the 10-Step Business Plan for Safety within the first year. Quarterly meetings with an assigned BWC representative are also required.
Deductible Program - Application deadline - April 30, 2010
This program provides up-front premium discounts in exchange for the employer accepting the financial risk of reimbursing BWC up to a predetermined amount of claims costs for each new claim incurred during the policy year. Small employers choose amounts from $500 to $10,000 as the per claim deductible amount, in exchange for discounts ranging from 1.4% to 26%. However, the deductible amount chosen cannot exceed 25% of the employer’s experience rated premium from the most recent full policy year. Participating employers must also pass a credit check. This year, BWC has made additional high deductible amounts available. Large employers can choose $25,000, $50,000, $100,000 or $200,000 as the per claim deductible amount, but may not choose an amount that exceeds 40% of their experience rated premium from the most recent full policy year. These high deductible levels require the individual employer to provide BWC with three years of audited financial reports. BWC may also require an employer to adopt an alternative premium payment plan, provide a letter of credit or surety bond and select an aggregate stop-loss limit. The aggregate stop-loss limits deductible payments to three times the deductible level chosen. The high deductible discounts range from 16% to 77% depending on the industry, premium size and deductible amount. Electing the aggregate stop-loss limit can alter the discount. Participation is annual from July 1, 2010 to June 30, 2011. Employers cannot withdrawal from the program until the year is over, regardless of the injuries they experience. Annual renewal in the program is automatic unless the employer provides written notice that they would like to be removed.
Employers can combine the deductible program discounts with group rating discounts unless the employer elects a large deductible option ($25,000 to $200,000). Combined discounts cannot exceed 65% at this time. Deductible discounts can be combined with other BWC discount programs but may not be utilized if the employer participates in group or individual retrospective rating, the $15k medical only program, or if the employer practices salary continuation.
CareWorks Consultants (CCI) and RiskControl360 (RC360) fully understand these alternative programs and can help determine which of them best fit your unique circumstances. For more information call CCI toll-free at 1-800-837-3200 or RC360 at 1-877-360-3608 and ask to speak to someone in the Sales Department.