New BWC Billing System Takes Effect July 1
COLUMBUS, Ohio — The Ohio Bureau of Workers’ Compensation’s board of directors this morning approved a revamped payment system that will enable private employers to pay their annual workers’ compensation premiums in two, four, six or 12 installments.
Also under the new flexible payment system, businesses will be billed before receiving coverage instead of the previous system of billing employers after they have received coverage.
“Prospective billing is not only the standard across the insurance industry, it will bring a number of benefits to Ohio employers, including the $1.2 billion in premiums BWC will pay on their behalf as we make the transition,” said BWC’s administrator/CEO, Steve Buehrer.
Businesses can expect to receive their first notice of estimated annual premium in early June for the 2015 policy year.
Beginning July 1, businesses will pay an estimated premium for the upcoming coverage year and undergo a payroll “true-up” process after the policy year ends to ensure the proper premium was paid.
As part of the previously announced $1.2 billion premium credit to ease transition costs for employers, BWC will pay businesses’ previous six months coverage, or final payroll report, under the old system, as well as 1/6th of the policy year 2015 premium due. Therefore, their first payment under prospective billing won’t be due until Aug. 31, Buehrer explained.
The switch to prospective billing is expected to provide other benefits to Ohio employers, he continued. These include an overall base rate reduction of 2.4% for private employers and 4% for public employers and increased ability for BWC to detect employer non-compliance and fraud.
BWC is offering free seminars across the state to provide details and answer questions about prospective billing. More information and a listing of seminar dates are available at the agency’s website.
Information on the move to prospective billing for public employers, which becomes effective Jan. 1, is also available at the site.
SOURCE: Ohio Bureau of Workers’ Compensation.
Copyright 2024 The Business Journal, Youngstown, Ohio.
