By Scott Coghlan*
Private employers in Ohio will soon see a major change in the payment system from the Ohio Bureau of Workers’ Compensation (the “BWC”). Starting on July 1, 2015, the BWC will begin prospective billing for private employers. With the change to prospective billing, which has been in the works for over a year, the BWC will not offer coverage until an employer has paid its premium.
The BWC will cover the estimated $1.2 billion transition cost, so employers will not have “double” payments for retrospective and prospective costs at once. The BWC will mail payroll invoices on August 1, 2015, and the first installment payments will be due on August 31, 2015. Initially, employers will be placed on a bi-monthly payment plan with the opportunity to select a different payment plan. Employers may choose from a number of installment-payment options, including monthly, bi-monthly, quarterly, bi-annually, and annual installment payments; however, minimum premium payors must pay in one lump-sum installment.
Following the transition to the new billing system, the BWC will provide employers with an invoice for their 12-month premiums in June for the policy year’s start on July 1. Employers will choose their payment plan on May 15, and will be locked into the payment plan for the entire policy year. If an employer fails to pay an installment, its coverage will lapse. Overall, the BWC believes the switch will save employers 2.4% on premiums, and it expects premium costs to drop further if the current trend of decreasing rates continues.
The BWC is holding prospective billing seminars for employers across Ohio. For more information, you may contact the BWC by phone at 216.584.0159 or by email at Linda.V.1@bwc.state.oh.us. The BWC is also providing prospective billing “webinars” for employers through its website. More information on the seminars, webinars, and the implementation of prospective billing is available on the BWC’s website, at bwc.ohio.gov.
*Scott Coghlan, the head of the firm’s workers’ compensation department, practices in all areas of workers’ compensation and workplace safety law. For more information about the BWC’s new prospective billing and workers’ compensation issues in general, please contact: Scott Coghlan | sc@zrlaw.com | 216.696.4441
