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BWC Updates and Overview Bernadette Campbell, Business Consultant
(216) 787-5922
John Canning, Industrial Hygienist
(216) 469-6396
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Why Transition to Prospective
Billing?
o Industry standard
o More flexible payment options
o Decrease in base rates by 2% for private employers
o Increased ability for us to detect non-compliance and fraud
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Private Employer Rate Cuts
o BWC has approved rate cuts in three of the past four years.
o Another rate cut of 10.8% took effect July 1, 2015.
o At that time, rates are down 21.4% from just the prior five years.
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Recent Rebates to Employers
o In 2013 and 2014, BWC returned $2 billion in rebates to Ohio employers.
o BWC to provide $1.2 billion transition credit to Ohio employers to ease the transition to a prospective billing system.
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Installment Options
• Annual (1);
• Semi-annual (2);
• Quarterly (4);
• Bi-monthly (6);
• Monthly (12).
o Minimum payers will not receive installment options.
o Minimum premium now pay $120 plus fees and assessments due June 30 each year.
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Lapsing Coverage
o BWC will lapse any employer who does not pay their installment on time.
o BWC will not lapse an employer who does not true-up.
• BWC will estimate the true-up by adding an additional 10% to the premium due and bill the employer.
• If the employer still does not report their true-up, then BWC will certify it to the Ohio Attorney General’s office for collections.
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Payroll True-up Report
o Prospective requires an annual payroll report true-
up. BWC will send a reminder in July of each year.
o The employer must report actual payroll for the
previous policy year.
• Online or over the phone only
• If additional premium is calculated, it is also due by Aug. 15.
• If credit calculated, it will be released in normal process.
• Employers must pay online to be eligible for the Go-green rebate.
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Payroll True-up Report
o Actual payroll information is critical for rate setting. For that reason, an outstanding payroll true-up report will result in immediate disqualification from rating plans and programs for that current policy year.
o Also, employers must complete* all true-ups to be eligible for programs going forward.
*Complete = reporting and paying (if necessary).
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Top 10 most frequently cited OSHA standards violated in FY2015
• Fall protection, construction
• Hazard communication standard, general industry
• Scaffolding, general requirements, construction
• Respiratory protection, general industry,
• Control of hazardous energy (lockout/tagout), general
industry
• Powered industrial trucks, general industry
Top 10 most frequently cited OSHA standards violated in FY2015
• Ladders, construction
• Electrical, wiring
methods, components
and equipment, general
industry
• Machinery and Machine
Guarding, general
requirements
• Electrical systems design,
general requirements,
general industry
Standard Citations Inspections Description
Total 329 64 All Standards cited for Electroplating, Plating, Polishing, Anodizing, and Coloring
1910.1200 47 27 Hazard Communication.
1910.132 25 16 General requirements.
1910.134 24 12 Respiratory Protection.
1910.305 18 10 Wiring methods, components, and equipment for general use.
1910.178 17 14 Powered industrial trucks.
1910.147 15 8 The control of hazardous energy (lockout/tagout).
1910219 15 9 Mechanical power-transmission apparatus.
1910.1027 15 4 Cadmium
1910.1026 11 9 --- No Description Found ---
1910.212 10 9 General requirements for all machines.
1910.107 9 4 Spray finishing using flammable and combustible materials.
1910.133 9 9 Eye and face protection.
Top 10 most frequently cited OSHA standards violated in FY2015
Top Injuries 2012-2015
o Plating SIC Codes 3372 & 3373
o Total of 1024 claims.
o 63% of the injured workers were <45 years old,
o 88% were men.
o The top 3 causes of injury were overexertion, cuts, and falls.
The top 10 injuries involved
• Open wound of finger
o Sprain lumbar region
o Open wound of hand
o Sprain shoulder
o Superficial injury cornea
The top 10 injuries involved
o Contusion of foot
o Sprain of wrist
o Sprain of knee
o Sprain lumbar sacral
o Open wound of forearm
Rating Plan and Program Deadline
o Group-experience rating – Monday prior to
Thanksgiving
o Group retro, One Claim Program, Deductible, Individual retro – Last business day in January
o Destination: Excellence programs – Last business day in May
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Discount/Rebate Programs
o Destination : Excellence
• Go Green
• Lapse Free
• Industry Specific Safety Program
• Safety Council Rebate
• Drug-Free Safety Program
• Transitional Work Grants
• Transition Work Bonus
Go-green and Lapse-free
o Benefits
• Lowers administrative costs for BWC; we share the savings
o Actions
• Go-green o Pay all premiums, complete payroll true-up report online
• Lapse-free o No lapses in last 60 months (automatic enrollment)
o Incentive
• 1-percent rebate, maximum of $2,000, annually
Industry-Specific Safety Program
o Raise awareness through the completion of an online safety assessment;
o Provide employers with year-round training and education opportunities; and
o Provide tailored consultations that address safety issues in the workplace
Industry-Specific Safety Activities Industry-Specific Safety Program (continued)
o Safety Activities
• Training o Specific classes for your industry
• Consultation services
• Ohio Safety Congress & Expo
• Multiple people in same activity counts as one activity
• Can have multiple activities in same service group
o Training details
• 11 sites across Ohio (many in customer service offices)
• Online, half-day, full-day, multiple-day courses
• On-site training courses
• Valuable training at no additional cost, AND you get a rebate on premiums!
Industry-Specific Safety Program Next Deadline: Last Business Day in May
o Purpose
• Encourages use of BWC training and consulting service activities to reduce accidents
o Benefits
• Gain knowledge to increase workplace safety
• Custom professional recommendations to reduce or eliminate safety hazards in your workplace
o Incentive
• 3-percent premium rebate
No charge for training and consulting services; paid for in premiums
• Current fiscal year (July 2015 - June 2016) , safety council members can receive up to a 4% rebate on premiums o 2% meetings attended
o 2% reducing frequency or severity by 10%
• Enroll in local safety council by July 31st, 2016 for rebates in 2016
Safety Council Rebate
Drug-Free Safety Program
o Drug Free Safety Program
o Purpose
• Incentive to implement drug testing at your workplace
• Goal: To eliminate drugs and alcohol in the workplace
o Levels
• Basic – 4-percent rebate o Employee training, documentation requirements
o Testing – pre/new hire, reasonable suspicion, post-accident, return-to-duty and follow-up after failed test
• Advanced – 7-percent rebate o Basic requirements + 15-percent random testing
• Comparable program – no discount o Required for state construction projects
o Requirements
• Safety review, accident analysis training and accident reporting
• Employee education
• Supervisor training
• Drug/alcohol testing
• Employee assistance
• Written Policy
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Drug Free Safety Program (continued)
What is Transitional Work?
o Employee gets injured visits doctor for medical
treatment
• Injured worker, not yet 100 percent, but released to work
with restrictions by doctor
• Employer accommodates injured worker’s restrictions,
allowing a return to work
o Sometimes referred to as “light duty”
o Transitional work is a formal approach to enabling
an injured worker to return to work with restrictions.
Transitional Work Bonus Program
o Purpose
• Rewards employers for successfully implementing a formal transitional work plan, that returns injured workers with restrictions back to the job quickly and safely.
o Actions
• Implement a formal transitional work plan.
• Successfully return an injured worker with restrictions, back to work, by accommodating those restrictions.
o Transitional work is of such strategic importance to controlling costs that BWC is offering the largest potential rebate of all the D:E programs: up to 10 percent of pure premium.
o Incentive
• Rebate up to 10 percent off pure premium for established period o Enroll by May 31st for policy year 2016, starting July 1, 2016.
o For claims occurring between July 1, 2016, and June 30, 2017.
o Performance calculated six months after end of program year.
• We base amount based on percentage of feasible claims that successfully use program.
• Worker must be released return to work with restrictions.
• Example – three successful out of four feasible o Discount = 3/4 *10-percent = 7.5-percent discount
Transitional Work Bonus Program Next Deadline: Last Business Day in May
Transitional Work Grant Limited Funds Available
o Purpose
• Money and tools to assist in creating a transitional work plan
• Grant is reimbursement for fee paid to BWC-accredited transitional work plan developer
o Actions
• Apply for grant, create plan
o Incentive
• 3-to-1 matching funds available to defray some costs
o Other tools available to create plan
• Templates, examples, but you must ask
Transitional Work Grant
o Eligibility
• Employer may not have a previously approved grant.
• Employer must have at least one claim in experience period.
o Incentive
• Grant amount based on number of employees o 11-49 employees up to $2,900
o 50-199 employees up to $5,200
o 200+ employees up to $6,300
o To apply
• Grant application
Light Duty vs. Transitional Work
Light Duty
o Light duty is open-ended.
o Light duty has no therapeutic
goals defined.
o Light duty responsibilities of
employer and employee are often
not outlined.
o Light duty has no alternative plan
if program fails.
Transitional Work • Sets a starting and
ending date
• Offers work
hardening or other
therapeutic benefits
• Defines responsibilities
clearly and in writing
• Has a developed
alternative plan
Transitional Work
Destination: Excellence Compatibility
o What if my rating plan is not compatible?
• You will not qualify for the discount or rebate, but…
• Services and strategies will still help with safety and claims management.
• Still consider doing activities of the program. o ISSP – using safety services
• Still consider implementing concepts and strategies. o Drug-Free Safety Program – drug testing at work
o Transitional Work Bonus Program – transitional work
Destination: Excellence Programs
o Industry-Specific Safety Program 3%
o Transitional Work 3 to 1 grant
o Transitional Work Bonus up to 10%
o Drug-Free Safety Program 4% or 7%
o Safety Councils 2% or 4%
o Vocational Rehabilitation
o Go Green Discount 1%
o Lapse-Free Discount 1%
Rating Plan and Program Deadline
o Group-experience rating – Monday prior to
Thanksgiving
o Group retro, One Claim Program, Deductible, Individual retro – Last business day in January
o Destination: Excellence programs – Last business day in May
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Increase Funds to Safety Grants
o Last year, BWC awarded $15 million in safety grants to 535 employers.
o BWC approved another $15 million for this year.
o $15 million will be available to employers in fiscal years 2016 and 2017.
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Safety Grants
o Grants to assist employers in purchasing equipment that will substantially reduce or eliminate injuries
o 3-to-1 matching funds (up to $40,000)
o Last year, BWC awarded $15 million in grants to 535 employers
o Have you applied for your safety grant? If not … what are you waiting for?
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Library Services
o Some of the resources and information BWC Library can help you find include:
• Safety Codes and standards
• Sample charts, forms, templates and written safety programs.
• Chemical safety information.
• Current issues in workers’ compensation.
• Occupational disease and injust management research studies.
• Occupational injuries and illness statistics;
• Training resources – content, effective training methods, outlines, PowerPoints, videos, etc. 49
How to reach BWC’s Library
30 W Spring St., Third Floor
Columbus, OH 43216
800-644-6292
Reference Desk: 614-466-7388
Video Library: 614-644-0018
Email: [email protected]
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Questions?
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