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BWC Deductible Program
Overview
The Ohio Bureau of Workers’ Compensation’s (BWC) Deductible Program allows employers to lower their premiums by offering an upfront premium discount while being responsible for a per claim deductible.
Eligibility Requirements
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Be a private, state-fund employer or a public employer taxing district
Note: Self-insuring employers and state agency public employers are not eligible to participate |
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Be current on all premium payments and deductible billings at the time you apply |
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Be in good standing at the time you apply |
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Have active coverage by the application deadline |
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Not have cumulative lapses in coverage in excess of 40 days within the 12 months preceding the application deadline for deductibles up to $10,000; |
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Not have cumulative lapses in coverage in excess of 15 days within the 5 years preceding the application deadline for deductibles of $25,000 or more; |
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Provide reviewed or audited financial statements prepared in accordance with generally accepted accounting principles for the three most recent fiscal years for deductibles of $25,000 or $50,000; |
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Provide audited financial statements prepared in accordance with generally accepted accounting principles for the three most recent fiscal years for deductibles of $100,000 or $200,000; |
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Demonstrate financial strength and stability. BWC may request additional financial requirements in certain circumstances. |
Deductible Levels
Employer will choose a deductible level appropriate for their business. However, for employer’s requesting deductible levels up to $10,000 the employer’s deductible level cannot exceed 25 percent of their premium in a policy year. Employer’s requesting deductible levels of $25,000 or more the deductible level cannot exceed 40% of their premium in the policy year. The employer will be responsible for claim costs up to the deductible level for any claim that occurs in the policy year of enrollment.
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$500 per claim |
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$1,000 per claim |
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$2,500 per claim |
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$5,000 per claim |
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$10,000 per claim |
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$25,000 per claim |
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$50,000 per claim |
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$100,000 per claim |
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$200,000 per claim |
Annual Aggregate Stop Loss Limit
An employer that selects a deductible level of $25,000 or more has the option of choosing an annual aggregate stop loss limit of 3 times their deductible level. This option allows employers to cap their total deductible liability for the program year. Selecting this option will result in reduced liability and reduced premium discount.
Deductible Billing Structure
BWC will pay claims costs in full. The employer will then reimburse BWC for any claim costs up to the deductible level you have chosen. BWC will send the employer monthly bills for the claim costs that occur during the policy year of participation. BWC will continue to bill until the employer has reached the selected deductible level. The employer is responsible to pay all deductible bills within 28 days of the invoice date. If the employer does not make timely payments, BWC will refer you to their collections department. An employer may pay online or mail payment to BWC.
Discount Calculation
BWC determines the level of discount based on the employer’s chosen deductible level and National Council on Compensation Insurance (NCCI) hazard group. BWC determines the NCCI hazard group using an employer’s primary manual classification.
For base-rated employers, BWC will apply the discount for participation directly to the base rate established for the policy year. BWC will calculate experience-rated employers’ discounts after they have established the modified premium rate. BWC will do this before any other premium discounts are calculated
All claims costs will be included in the employer's experience-rate calculation.
Application and Enrollment
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Enrollment period |
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- Private employers - March 1 to last business day in April |
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- Public employer taxing districts - September 1 to last business day in October |
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Coverage period |
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- Private employers - July 1 through June 30 |
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- Public employer taxing districts - January 1 through December 31 |
Compatibility with Other BWC Programs
While participating in the Deductible Program, an employer cannot participate in the programs listed below for injuries that occur during that policy year.
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Group Retrospective Rating Plan |
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Individual Retrospective Rating Plan |
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Salary Continuation |
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$15,000 Medical-Only Program |
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Group rating for any deductible level chosen of $25,000 or greater |
Note: Discounts for employers participating in the Deductible Program and a group rating plan together can't exceed the maximum credit allowable for group during that rating year.
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