What separates the basic level from the advanced level of DFSP?
The advanced level has a 7 percent discount that does not stack on top of the 4 percent from the basic level. To achieve the advanced level, companies have to do everything that is required on the basic level, plus 15 percent random testing of their work force. They also must complete a safety action plan based on the assessment that was done through the safety review.
At the advanced level, if there is a positive drug screen the employer is required to give a second chance for an employee who tests positive. A ‘zero tolerance’ policy is not acceptable.
You cannot immediately terminate someone for a positive drug screen if you are at the advanced level of DFSP. The BWC encourages you to rehabilitate someone who tested positive. There are exceptions that BWC will make in certain cases, such as someone who distributes illegal drugs.
As part of your health insurance, BWC would like participants to include an employee assistance plan, which helps with rehabilitation efforts.
How does the split plan work?
If company A has one workers’ comp claim that totals $175,000 of losses and company B has 10 claims that total $175,000 in losses, they would be charged the same rates under the current system. Under the split plan, the company with 10 claims would pay more in premiums than the company that had one fluke claim.
The split plan is scheduled for implementation July 1, 2012.
How will change affect companies?
The impact on individual employers’ experience modifiers is still undetermined. However, the BWC anticipates a neutral effect on premiums collected as a whole.
Individually speaking, a company that has one bad claim suffered four years of higher premiums because of it. This is the possibility that it will not affect them as significantly — if they keep their frequency of claims to a minimum.
The company that has 10 claims in that same period brings a greater risk to the State Fund. Therefore, BWC — in their efforts to charge the right rate to the right risk — would increase the amount of premiums that company would pay and decrease the amount for the companies that are not having frequent injuries. v
Ken Finley is a senior rate analyst with V & A Risk Services, a strategic partner with Ohio Employee Health Partnership. Reach him at (800) 493-9662 or [email protected].
