What is open enrollment?
On a bi-annual basis, the Bureau of Workers’ Compensation offers an open enrollment period where employers are encouraged to evaluate the services their managed care organization is providing to determine if they would like to make a change. This term’s MCO open enrollment period runs from May 3 through May 28.
MCOs are essential to prompt claim filing, medical treatment and the implementation of recovery and return-to-work programs. They are also the primary link between injured workers, medical providers, employers and the BWC. Selection of an MCO is an important decision that directly impacts the health and safety of Ohio employees and a company’s bottom line.
To explain the options available and to help employers make the best choice for their business, BWC produces the MCO Selection Guide and the MCO Report Card. The report card provides an objective snapshot of how effectively each MCO manages injury reporting and returning injured employees to work. The guide and report card are available at www.ohiobwc.com.
What is group-experience rating?
The group-experience-rating plan allows employers who operate similar businesses to group together to potentially achieve lower premium rates than they could individually. While every employer’s situation is unique, group-experience rating could save you as much as 50 percent in premiums. An organization, such as a trade association or chamber of commerce, sponsors a group. Each sponsor requires group members to pay a membership fee.
The sponsor must submit a safety plan to BWC each year. The group must demonstrate common purpose and possess results from safety and loss-control practices.
The sponsor forms the group and controls which members will participate. BWC adjusts rates for group members taken as a whole, as if the group was one big company. Every year, BWC reviews each group-experience-rating application to ensure that each group meets the criteria for group-experience rating.
What is an individual-retrospective-rating plan?
The individual-retrospective-rating plan allows an employer to assume a portion of the risk in return for a possible reduction in premiums. The greater the assumed risk, the greater the potential reduction in premiums.
Employers who have a consistent claims history and proven safety practices will benefit the most from individual-retrospective rating. You can customize the plan to control the amount of risk you assume and the potential savings by selecting a maximum premium and maximum claims costs you are willing to pay. You may benefit from individual-retrospective rating because of lower initial premiums and realized cash flow advantages, which increase as premiums decrease.
The drawbacks of individual-retrospective rating may outweigh the advantages for some employers. For example, if you incurred high losses in a rating year, actual premiums could double.
