To learn more about CompManagement’s Deductible Program services for Ohio, please contact our Customer Support Unit at (800) 825-6755, option 3.

Ohio Deductible Program Overview

The Ohio Bureau of Workers’ Compensation’s (BWC) Deductible Program is an alternative rating program that allows employers to lower their premium expense by offering an upfront premium discount in exchange for the employer assuming a per claim deductible. Employers will select a deductible level that is appropriate to their business.

The chart below lists the various deductible levels and the range of premium discounts available within each level. The actual upfront savings discounts are determined by the selected deductible level, as well as the employers NCCI Hazard Group.

It is important to note that the employer will be responsible for the claim costs up to the selected deductible level for any claim that occurs during the enrolled policy period.

Eligibility Requirements

Small Deductible Program

• Private, state-funded employer or public employer taxing district
• Current on all premium payments and deductible billings at the time of enrollment
• Active coverage by the application deadline and good standing at time of enrollment with BWC
• No cumulative lapses in coverage in excess of 40 days within the 12 months preceding the application deadline
• Meet required credit score of BWC
• Deductible may not exceed 25 percent of standard premium based on individual experience modifier

Large Deductible Program

• Private, state-funded employer or public employer taxing district
• Current on all premium payments and deductible billings at the time of enrollment
• Active coverage by the application deadline and good standing at time of enrollment with BWC
• No cumulative lapses in coverage in excess of 15 days within the 5 years preceding the application deadline or renewal anniversary
• Provide financial information for credit analysis by BWC
  • Reviewed financials for $25,000 and $50,000 levels for at least the 3 most recent fiscal years
  • Audited financials for $100,000 and $200,000 levels for at least the 3 most recent fiscal years
• Deductible may not exceed 40 percent of standard premium based on individual experience modifier
• Option to request annual aggregate stop-loss limit set at 3 times the deductible level chosen

Deductible billing structure

Claims costs are paid in full by BWC. Employer then reimburses BWC for any claim costs up to the deductible level for any claim that occurs during the enrolled policy period. For deductible levels less than or equal to $10,000, all claim costs for injuries incurred in that policy year are included in the experience rate calculation less any deductible billed to that employer. For deductible levels greater than $10,000, the entire claims cost for injuries incurred in a policy year are included in the employer’s experience rate calculation. BWC sends the employer monthly invoices for the claim costs that occur during the policy year of participation. BWC will continue to bill the employer until the selected deductible level is reached. All deductible bills must be paid within 28 days of the invoice date. Lack of timely payments will result in BWC referring the account to collections and removing the policy from the program. Payments may be made online or mailed directly to BWC.

Application and Enrollment

Employers must submit an application for the Deductible Program (U-148) to enroll in this program. Below are the enrollment and coverage periods.

Ongoing Participation

An eligible employer is automatically renewed at the current deductible level. If an employer wants to change the deductible level, a new U-148 should be submitted during the enrollment period. Changes or withdrawal from the program are not allowed until the next policy year. BWC conducts mid-term reviews to determine continued eligibility. If an employer fails to meet program requirements, BWC can revoke eligibility for the second half of the policy year. If this should occur, BWC will send a 30-day notice to the employer. To leave the program in the upcoming policy year, an employer must submit notice in writing to the BWC.

Compatibility with other BWC Programs

While participating in the deductible program, employers can participate in the programs listed below for injuries that occur during that policy year:

• Drug Free Safety Program (Small Deductible only)
• Early Payment Discount (cannot be combined with the Go Green Discount)
• Grow Ohio Incentive (Small Deductible only)
• Safety Council
• Salary Continuation

However, employers can participate in any of the other BWC Programs. Discounts for employers participating in the Deductible Program and a group rating plan together cannot exceed the maximum credit allowable for group during that rating year.

CompManagement’s Program

• Superior Claims Management and Cost Control Services
• eTEAM (web-based interactive resource for clients)
  • Provides real-time access to claim information 24/7
  • Ability to compare and track payments made against selected deductible level
• Safety & Loss Control Consulting Services
• Audited BWC Billings (reconcile monthly deductible statements) upon submission from the Employer

Employers who effectively manage their workers’ compensation claims should realize a financial benefit. However, failure to manage claim costs could result in the total program cost exceeding the original premium cost and negating any savings. Employers that participate in the Deductible Program must focus on workplace health and safety in order to realize savings.

Example of Potential Savings