OhioBWC - Basics: (Policy library) - File

 

Policy Name:

Policy Activity Rebate (PAR)

Policy #:

EP-16-05

Code/Rule Reference:

ORC 4123.321; OAC 4123-17-10, 4123-17-03.

Effective Date:

July 1, 2018

Origin:

Employer Policy

Supersedes:

N/A

History:

New policy issued January 16, 2019.

Review Date:

January 1, 2022

 

 

I.       Policy Purpose

 

The Ohio Bureau of Workers' Compensation (BWC) uses the Policy Activity Rebate (PAR) as a pilot program to raise employer awareness and understanding of workers’ compensation matters, including safety, claims, and policy management.

 

II.     Applicability

 

This policy applies to BWC Employer Programs, BWC Regional Employer Management Services, BWC Strategic Direction, private employers (PA employers), public employer taxing districts (PEC employers), and their authorized representatives.

 

III.    Definitions

 

A.     Incentive determination year: The last full policy year for which payroll information is available.

B.     Experience modification (EM): The EM is an adjustment applied to the base rate, as defined in OAC 4123-17-03(D).

C.      Program year: The policy year for which the employer seeks to earn the Policy Activity Rebate (PAR).

IV.   Policy

A.     Eligibility criteria.

1.      Only existing PA employers and existing PEC employers continuing to participate in the state insurance fund are eligible for the PAR program.

2.      The employer must have premium for the incentive determination year of at least $350.

3.      The employer must have a published EM equal to or greater than 1.0 as of the beginning date of the program year.

4.      The employer must be in an active, reinstated, or debtor-in-possession status as of the enrollment date.

5.      The following employers are not eligible for the PAR program:

a.      Professional employer organizations (PEOs), unless the PEO and each of the PEO’s client employers meet all eligibility and program requirements;

b.      Employers initiating coverage on or after the beginning date of the program year;

c.      Self-insuring employers; and

d.      State agencies.

6.      The PAR program is not compatible with participation in the following programs: Group-Experience Rating, Group Retrospective Rating, Individual-Retrospective Rating, Deductible Program, Experience Modification Cap, and One Claim Program.

B.     Application requirements.

1.      An employer must enroll in the PAR program through BWC’s website www.bwc.ohio.gov.

2.      Application deadlines:

a.      A PA employer must submit an application by the last business day of January for the program year beginning the previous July 1.

b.      A PEC employer must submit an application by the last business day of July for the program year beginning the previous January 1.

C.      Operation of program.

1.      The employer must complete activities during the program year to be eligible for the PAR. The deadlines for completing activities are:

a.      May 31 of the program year for PA employers.

b.      November 30 of the program year for PEC employers.

2.      PAR program activity requirements:

a.      The employer must document and track progress toward completing the employer’s required activities by using the Policy Activity Rebate Program progress look-up located on BWC’s website. BWC will not update an employer’s activities upon completion.

b.      Each completed activity has a credit value. BWC maintains a list of PAR program activities and credit values.

c.      The employer must complete activities totaling eleven (11) credits for each program year.

3.      Training activity requirements:

a.      Training activities must be completed by the employer on a policy number basis because each policy number is considered a separate entity.

i.       An employer with one policy number, who is participating in multiple programs, may use one training to fulfill the requirements for multiple programs.

ii.      An employer with multiple policy numbers who is participating in a single program may use one training credit to fulfill the requirement for only one policy number because each policy number:

a)      Has separate responsibilities to complete the requirements set forth in the programs chosen; and

b)     Receives discounts separately.

b.      Training activities must be completed by an employee of the employer.

4.      The PAR is fifty percent (50%) of the blended premium, up to a maximum of $2,000, for the incentive determination year.

a.      The PAR cannot reduce an employer’s premium below the amount of the minimum administrative charge for the incentive determination year as set forth in OAC 4123-17-26.

b.      The PAR will not be reduced by premium based credits already earned, including, but not limited to, Lapse-Free, Go Green, and Safety Council.

c.      No coverage penalties will not be included in the premium base used to calculate the PAR.

d.      BWC will not make adjustments to an employer’s PAR for any reason including, but not limited to: audits, rate adjustments, appealed balances, and changes in lapse status.

e.      BWC will reduce the PAR amount by any outstanding balance owed by the employer.

5.      To have a PAR calculated, the employer must meet the following criteria at the time of the PAR calculation:

a.      The employer must be in an active, reinstated, or debtor-in-possession status.

b.      The employer must complete payroll reporting and premium reconciliation, pursuant to OAC 4123-17-14, by the following dates:

i.       For PA employers, no later than the June 1 following the August 15 payroll true-up deadline.

ii.      For PEC employers, no later than the December 1 following the February 15 payroll true-up deadline.

See the Payroll True-Up policy for additional information.

6.      An employer who cancels coverage during the program year is not eligible for a PAR.

7.      BWC will not grant a partial PAR.

D.     Exit or removal from program.

1.      An employer may voluntarily withdraw from the PAR program by providing written notice to BWC.

2.      BWC will remove an employer from the PAR program if the employer cancels coverage during the program year.

3.      BWC may conduct a random audit of an employer’s completed activities. BWC reserves the right to remove an employer from the PAR program if the employer falsifies, or misrepresents, the completion of program activities. An employer may also be removed if the employer fails to meet any other program requirements.

E.      Resolution of complaints.

1.      Employer complaints should be processed under the General Employer Complaint Policy.

2.      BWC has not identified any program-specific extenuating circumstances that apply to the PAR program.