Blanchester Area Chamber of Commerce
Blanchester, OH 45107
SAFETY - HAVE TO vs WANT TO
Raising The Bar for Safety
Conducting Effective Ongoing Safety Training
BWC is transitioning to a billing system that will provide more flexibility for employers while
reducing overall systems costs. This change aligns BWC with standard industry practice and
enables us to collect premiums before extending coverage. This transition becomes effective
July 1, 2015, for private employers, and Jan. 1, 2016, for public employers. This conversion is
part of BWC’s ongoing efforts to modernize its operations and provide better service to Ohio’s
employers.
The benefits of prospective payment
A switch to a prospective billing system could provide the following benefits to Ohio employers:
O Overall base rate reduction of 2 percent for private employers and 4 percent for public
employers;
O Opportunities for more flexible payment options (up to 12 installments);
O Better opportunities for BWC to provide quotes online or via the phone;
O Fewer costs from employers who either don’t pay premiums timely or have workers
injured without coverage being mutualized among employers in good standing;
O Increased ability for BWC to detect employer non-compliance and fraud.
How it will work
Ohio employers will see a few modest changes as this transition takes place. They are:
O Earlier opportunities to sign up for incentive programs - Beginning in the fall of 2014,
employers looking to participate in programs such as group rating, group-retrospective
rating or other rating plans will have the opportunity to make those selections sooner;
O A one-time credit in July 2015 - An average employer will enjoy a one-time premium
credit, as BWC will cover his/her August payroll report (covering the January to June 2015
premium) as well as the first two-month’s (July and August) prospective premium;
O A new payment schedule - Employers will receive their invoice in June and begin paying
premiums before July 1. While that is earlier than before, all employers will be able to
make at least quarterly payments, and some employers will be able to pay up to as many
as 12 installments;
O A true-up process - Because BWC is providing workers’ compensation insurance coverage
based on estimated payrolls, we will ask businesses to report or “true-up” their actual
payroll for the prior policy year. This begins in August 2016.
Fact sheet December 2013
Modernizing BWC – The plan to
optimize the premium collection model
Modernizing BWC – The plan to
optimize the premium collection model