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Policy
Name:
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Lapse-Free
Rebate
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Policy #:
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EP-12-01
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Code/Rule
Reference
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OAC 4123-17-14.4;
4123-17-74,
Appendix C; 4123-17-75, Appendix
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Effective
Date:
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July 1,
2015
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Approved:
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Kevin R.
Abrams, Chief of Employer Services
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Origin:
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Employer
Policy
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Supersedes:
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Lapse-Free
Discount policy effective July 1, 2012.
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History:
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Revised
August 29, 2016; July 30, 2015. New policy issued April 5, 2013.
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Review
Date:
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July 1,
2020
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I. Policy Purpose
The
Ohio Bureau of Workers’ Compensation (BWC) will provide a rebate to employers
that maintain lapse-free coverage as outlined in OAC 4123-17-14.4.
II. Applicability
This
policy applies to employers, authorized representatives, BWC Employer Programs,
and Field Operations.
III. Definitions
A.
Active status: A coverage status applied to an
employer’s policy. Active status does not include an employer policy with a
status of lapsed, cancelled, or no coverage.
B.
Rebate eligibility
evaluation dates:
1.
For a private
employer (PA) the evaluation date is the July 1 immediately after the
conclusion of the participating policy year.
2.
For a public
employer taxing district (PEC) employer the evaluation date is the January 1 immediately
after the conclusion of the participating policy year.
IV. Policy
A.
Eligibility
criteria:
1.
The employer must:
a.
Have coverage that
is in an active policy status at the time of calculation;
b.
As of the rebate
eligibility evaluation date, not have had a lapse in coverage during the
preceding sixty (60) months, and;
c.
Have reported actual
payroll for the applicable policy year and paid any premium due upon
reconciliation of estimated premium and actual premium, no later than the due
date set forth in OAC 4123-17-14.
2.
The following
employers are not eligible for the Lapse-Free Rebate:
a.
Employers paying the
minimum administrative charge for the applicable policy year as set forth in
OAC 4123-17-26.
b.
State agencies.
c.
Self-insuring
employers.
B.
Operation of
program.
1.
No application is
required. If an employer meets the eligibility criteria, BWC will calculate a
rebate.
2.
The reporting of
zero payroll or the paying of the minimum administrative charge in prior
payroll periods are not factors in evaluating the employers Lapse-Free
eligibility.
3.
The rebate
percentage is the amount identified in the appendix to OAC 4123-17-75.
The rebate is the lesser of:
a.
One percent (1%) of
the employer’s blended premium costs in the applicable policy year; or.
b.
A maximum of two
thousand dollars ($2,000).
4.
The rebate is
calculated after the employer has reported annual payroll for the applicable
policy year and paid any premium it owes, no later than the due date.
5.
The rebate cannot
reduce the employer’s premium below the amount of the minimum administrative
charge.
6.
BWC may recalculate
the employer’s rebate if there is a subsequent rate adjustment to the
employer’s account for the applicable policy year.
7.
An employer
receiving the Lapse-Free Rebate may participate in other compatible BWC
employer programs as outlined in OAC 4123-17-74, Appendix C.
C.
Resolution of
complaints.
1.
Employer complaints
should be processed under the General
Employer Complaint Policy.
2.
BWC has not
identified any specific extenuating circumstances that apply to the Lapse-Free
Rebate.