Policy
Name:
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Grow
Ohio Incentive Program
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Policy #:
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EP-07-03
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Code/Rule
Reference
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Ohio
Revised Code (ORC) 4123.29, 4123.34; Ohio Administrative Code (OAC) 4123-17-14, 4123-17-61.1, 4123-17-69, and 4123-17-74, (including Appendices A, B, and C).
|
Effective
Date:
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July 1,
2023
|
Approved:
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Rex
Blateri, Chief of Employer Services
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Origin:
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Employer
Policy
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Supersedes:
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All
policies and procedures regarding Grow Ohio that predate the effective date
of this policy.
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History:
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Revised December
12, 2023; September 14, 2021; September 12, 2018; July 1, 2015; May 2, 2014;
January 1, 2013. New policy issued July 1, 2011.
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Review
Date:
|
July 1,
2028
|
I. Policy Purpose
The
Ohio Bureau of Workers’ Compensation (BWC) permits new employers to participate
in the Grow Ohio Incentive Program (Grow Ohio) in accordance with all
applicable laws and rules.
II. Applicability
This
policy applies to employers, employer authorized representatives, BWC Employer
Programs, Division of Safety and Hygiene (DSH), and Policy Processing.
III. Definitions
A.
Application for
Ohio Workers’ Compensation Coverage (U-3): Form used by an employer to apply for workers’
compensation coverage.
B.
Continuing
eligibility evaluation date:
The date an employer is reevaluated during the program eligibility period to
determine continued eligibility in the program. The date for a private employer
(PA employer) is April 1, and the date for a Public Employer Taxing District
(PEC employer) is October 1.
C.
Group Experience
Rating (Group Rating):
Employers joined together under a Sponsoring Organization in order to be
evaluated as one employer for the purpose of workers' compensation premium
calculation and for receiving up to the maximum discount for that program year
on their payroll rate.
D.
Gross
misrepresentation: When
an employer fails to disclose:
1.
That it has merged
with one or more entities; or
2.
The true nature of
its business practice in its application for Group Rating coverage, and this
failure to disclose would cause financial harm to the other members of the
Group.
E.
Initial policy
year: The policy year
including the date on which the new employer’s coverage becomes effective
unless changed at BWC’s discretion in section IV.A.3. below.
F.
New employer: An employer creating one or more jobs
in the state of Ohio for which either of the following is true:
1.
The employer is a
new business entity in Ohio; or
2.
The employer is an
out-of-state employer with no prior operations in Ohio and no prior workers’
compensation insurance coverage in Ohio.
G.
Predecessor: An employer that precedes another in
whole or in part in the operation of a business.
H.
Program
eligibility period: The
new employer’s initial policy year and the two consecutive policy years
thereafter.
I.
Safety Management
Self-Assessment (SH-26): This form is intended to help employers evaluate their
safety and claims management systems and identify opportunities for
improvement. The form contains eleven (11) safety and health categories
considered critical to an effective safety and health process. The person(s) in
the organization most familiar with the current safety and claims management process
should complete the form.
J.
Sponsoring
Organization: An entity
with governing members certified by BWC to sponsor and market Group Experience
Rating and Group Retrospective Rating programs through BWC. Certification
requirements for Sponsoring Organizations are outlined in OAC 4123-17-61.1.
K.
Successor: An employer that succeeds another in
whole or in part in the operation of a business.
L.
Third Party
Administrator (TPA):
Any person or organization that works with certified Sponsoring Organizations
to administer and facilitate an employer’s application to Group Rating programs.
IV. Policy
A.
Eligibility
Criteria. BWC evaluates program eligibility at the time an employer files an
Application for Ohio Workers’ Compensation Coverage (U-3).
1.
The employer must be
a new employer as defined in section III.F. above.
2.
BWC will permit a
successor to participate in Grow Ohio only under the following circumstances:
a.
The predecessor was
participating in Grow Ohio; and
b.
The successor is a
new employer as defined in section III.F. above.
c.
The successor’s
program eligibility period will end on the same date as the predecessor’s program
eligibility period would have ended.
3.
BWC may determine an
alternate initial policy year based on several factors that include but are not
limited to:
a.
An employer
established coverage during the last thirty (30) calendar days of a policy year;
or
b.
An employer granted
an earlier or later effective date of coverage through the BWC Application for Coverage (U-3) policy or adjudicating process, as set
forth in OAC 4123-14-06.
4.
The following types
of employers are not eligible to participate in Grow Ohio:
a.
An Alternate
Employer Organization (AEO) or a Professional Employer Organization (PEO) as
defined in OAC 4123-17-15.
b.
A self-insuring
employer or a state fund employer that was previously self-insured.
c.
A PEC employer that
is not:
i.
A community school
established under ORC Chapter 3314; or
ii.
A public-private
partnership securing workers’ compensation insurance under ORC 4123.03.
d.
An employer for
which a combination or transfer of experience is indicated under OAC 4123-17-02, except as provided in section IV.A.2.
above.
e.
An employer that BWC
determines is essentially the same employer for which coverage has previously
been provided, including a debtor-in-possession employer.
f.
An employer that
elects to participate in a program that is incompatible with Grow Ohio, as
outlined in OAC 4123-17-74, Appendix C.
5.
An employer is
eligible to continue its participation in Grow Ohio if, as of each continuing
eligibility evaluation date:
a.
The employer holds
active workers' compensation coverage; and
b.
The employer must:
i.
Be current with
respect to all payments due BWC, as defined in paragraph (A)(1)(b) of OAC 4123-17-14;
ii.
Be current on the
payment schedule of any part-pay agreement entered into for payment of premiums
or assessment obligations;
iii. Not have cumulative lapses in workers’
compensation coverage in excess of forty (40) days within the prior twelve (12)
months; and
iv.
Have reported actual
payroll and paid any premium due upon reconciliation between estimated premium
and actual premium due for the preceding policy year.
B.
Operation of
program.
1.
BWC will
automatically provide eligible employers with a twenty-five percent (25%) Grow
Ohio discount on blended premium for the policy year their coverage becomes
effective and up to the next two following policy years based on the employer
continuing to meet eligibility requirements.
a.
BWC will apply the
twenty-five percent (25%) Grow Ohio discount for the duration of the employer’s
program eligibility period unless the employer elects to participate in Group Rating.
An employer exiting Group Rating, who is not otherwise prohibited from
participating in Grow Ohio, is eligible for any remaining policy years in the
program eligibility period.
b.
The Grow Ohio
discount does not apply to:
i.
The non-refundable
application fee as outlined in OAC 4123-17-13(A)(1);
ii.
Any premiums or
assessments due by the employer for not complying with Ohio law as outlined in
OAC 4123-17-13(C);
iii. Any findings of premium deficiencies
resulting from a review of the employer in which BWC determines the employer
misrepresented or failed to report payroll for any period;
iv.
Deductible claim
cost billings;
v.
The minimum
administrative charge as outlined in OAC 4123-17-26; and
vi.
Penalties for late
payments set forth in OAC 4123-17-16.
2.
Application for
Group Rating through Grow Ohio.
a.
Under Grow Ohio, BWC
waives the Group Rating application deadlines as set forth in OAC 4123-17-74, Appendix A and Appendix B.
i.
The employer must
meet all other Group Rating requirements outlined in OAC 4123-17-61 through
4123-17-68.
ii.
The employer’s
participation in Group Rating after the initial policy year is subject to all
the requirements as outlined in OAC 4123-17-61 through 4123-17-68.
b.
New employers can
access the Grow Ohio service offering on www.bwc.ohio.gov which provides a link to a list of Sponsoring Organizations and their available
groups categorized by industry type. Each Group identifies the TPA that
represents each Sponsoring Organization.
c.
TPAs may contact new
employers using a list of employers recently assigned a policy number.
d.
The employer must
file an Employer Statement for Group-Experience-Rating Program (AC-26) form
with the Group’s Sponsoring Organization.
e.
The Sponsoring
Organization must electronically submit the AC-26 and an addendum to the
Employer Roster for Group Rating (AC-25) to BWC within thirty (30) days of the
date BWC assigns a policy number to the new employer.
f.
A new employer
receiving a finalized policy within thirty (30) days prior to the Group Rating
deadline and the end of the initial policy year may be eligible for both the initial
policy year and the next policy year’s Group by completion of the AC-26.
Example: A new PA employer receives a policy number November 1, of the initial
policy year. This employer can apply to Group Rating for the remainder of the initial
policy year and the next policy year.
g.
When the original
Sponsoring Organization did not have a compatible industry group to place an
employer, BWC may accept an AC-26 more than thirty (30) days after the
assignment of a policy number if all the following conditions are met:
i.
The employer‘s AC-26
is filed with a different Sponsoring Organization, and
ii.
The new Sponsoring
Organization must electronically submit the fully executed AC-26, and an
addendum to the AC-25, to BWC within thirty (30) days of the date the employer
was notified by the original Sponsoring Organization there was no compatible
industry group.
C.
Program Safety
Requirements.
1.
A new employer participating
in Grow Ohio electing the twenty-five percent (25%) discount must complete one
of the three safety requirements listed below in order to remain eligible for
the program:
a.
An online Grow Ohio
safety survey;
b.
At least two hours
of safety training offered by DSH, which can be an in-person class, a virtual
training class, a webinar, or an e-course found on the BWC Learning Center; or
c.
The Safety
Management Self-Assessment (SH-26).
2.
Completion of one of
the three safety requirements listed in section IV.C.1. must be finalized by
the following applicable date:
a.
The last business
day of December for an employer policy with an initial effective date of
January 1 through and including June 30.
b.
The last business
day of June for an employer policy with an initial effective date of July 1
through and including December 31.
3.
An employer
withdrawing from a Group Rating program with remaining Grow Ohio eligibility
that has not completed the required program safety requirements will have until
the end of its current policy year to complete the safety requirements to
receive the discount.
D.
Removal/Exit from
Program.
1.
BWC will remove an
employer from participation in the Grow Ohio at the beginning of the next
policy year if either of the following apply:
a.
The employer fails
to complete the required safety training for its year of participation; or
b.
The employer elects
to participate in a program that is incompatible with the program as outlined
in OAC 4123-17-74, Appendix C.
2.
BWC will immediately
disqualify an employer from the Grow Ohio program if the employer is removed
from a Group for a gross misrepresentation on its application for Group Rating
as outlined in OAC 4123-17-62(F).
3.
BWC will immediately
disqualify an employer from the Grow Ohio Program if the employer fails to
timely report actual payroll and pay any premium due upon reconciliation of
estimated premium and actual premium. An employer will be deemed to have met
this requirement if BWC receives the payroll report and the employer pays
premium associated with such report before the expiration of any grace period.
See the Payroll True-Up policy for additional information.
4.
BWC will immediately
disqualify an employer from the Grow Ohio Program if BWC determines the
employer knowingly misrepresented information on the U-3.
a.
“Knowingly” means
the employer had actual knowledge of the misrepresentation and was aware the
misrepresentation would cause a certain result. An employer will not be deemed
to have knowingly misrepresented information on the U-3 based on:
i.
The employer’s
reasonable interpretation of a law, rule, or classification code; or
ii.
Written advice from
BWC.
b.
An employer
disqualified for knowingly misrepresenting information on the U-3 must make
restitution of all discounts the employer received.
5.
BWC will immediately
disqualify an employer from the Grow Ohio Program if the employer failed to
comply with OAC 4123-17-14.1, Misrepresentation of Payroll,
and the employer must make restitution for all discounts the employer received
during policy years of noncompliance.
6.
An employer may
voluntarily withdraw from Grow Ohio by notifying BWC in writing.
a.
The request must be
signed by the chief executive officer (CEO) or designated management
representative of the employer.
b.
The effective date
of withdrawal will be the beginning date of the policy year in which BWC
receives the employer’s withdrawal request.
c.
The withdrawal will
be permanent regardless of the employer’s program eligibility period and
completion of the required training.
E.
Resolution of
complaints.
1.
An employer may
appeal BWC’s decision that it is ineligible to participate in, or has been
removed from, Grow Ohio.
2.
Employer complaints are
processed under the General Employer Complaint Policy. BWC has not identified any specific
extenuating circumstances that apply to Grow Ohio.
F.
Scenario.
An employer was disqualified from
enrolling in Group Rating through Grow Ohio for not being included on a Group Rating
roster within thirty (30) days of policy finalization due to additional
application review by BWC. Will BWC extend the time an employer has to apply
for Group Rating?
Answer: BWC will grant the employer
additional time but all the following must be satisfied:
1.
The employer must
have been on the Group Rating roster;
2.
The employer must be
rejected for not being timely submitted as outlined in section IV.B.2.;
3.
BWC’s Policy
Processing department determines a combination is not warranted and informs BWC
Employer Programs to reconsider the employer for eligibility;
4.
The employer was
included on a Group Rating roster within thirty (30) days of notification of
Grow Ohio eligibility; and
5.
The employer has met
all other eligibility requirements for Group Rating.