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.

Effective Date:

July 29, 2022

Approved:

Rex Blateri, Chief of Employer Services

Origin:

Employer Policy

Supersedes:

Policy Activity Rebate (PAR) policy effective July 1, 2021.

History:

Revised September 7, 2022; October 19, 2021; June 24, 2020; November 7, 2019. New policy issued January 16, 2019.

Review Date:

N/A

 

 

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 Business Consulting, private employers (PA employers), public employer taxing districts (PEC employers), and their authorized representatives.

 

III.   Definition

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

IV.  Policy

A.    BWC will be discontinuing the PAR pilot program. For PA employers, BWC is discontinuing the PAR program effective June 30, 2023. For PEC employers, BWC is discontinuing the PAR program effective December 31, 2023.

B.    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 be in an active, reinstated, or debtor-in-possession status as of the enrollment date.

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

a.    Alternate employer organizations (AEOs), unless the AEO and each of the AEO’s client employers meet all eligibility and program requirements;

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

c.     Employers initiating coverage after the enrollment deadline for the program year;

d.    Self-insuring employers; and

e.    State agencies.

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

C.   Enrollment requirements.

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

2.    Enrollment deadlines:

a.    A PA employer must enroll by the last business day of February for the program year beginning the previous July 1.

b.    A PEC employer must enroll by the last business day of August for the program year beginning the previous January 1.

D.   Operation of program.

1.    PAR program requirements. The employer must complete activities during the program year to be eligible for the PAR.

2.    PAR activity requirements:

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

b.    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.

i.      The employer must retain documentation proving completion of the employer’s required activities.

ii.     BWC will not update the employer’s progress upon the completion of activities.

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

d.    The deadlines for completing activities and tracking the completion of the activities on the Policy Activity Rebate progress look-up are:

i.      June 30 of the program year for PA employers; and

ii.     December 31 of the program year for PEC employers.

e.    An employer completing the required number of activities must electronically acknowledge BWC’s right to audit the employer’s activities.

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.

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

4.    PAR calculation. The PAR is fifty percent (50%) of the employer’s trued-up premium, up to a maximum of $2,000, for the program year.

a.    The PAR cannot reduce an employer’s premium below the amount of the minimum administrative charge for the program 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.     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.

d.    BWC will apply the PAR to any outstanding balance owed by the employer.

e.    BWC will not grant a partial PAR.

5.    Rebate eligibility.

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

i.      The employer must have trued-up premium for the applicable program year of at least $350;

ii.     The employer must be in an active, reinstated, or debtor-in-possession status; and

iii.    The employer must have completed payroll reporting and premium reconciliation, pursuant to OAC 4123-17-14, prior to the expiration of the applicable grace period. See the Payroll True-Up policy for additional information.

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

6.    BWC may conduct a random audit of an employer’s completed activities. BWC reserves the right to deny an employer’s PAR if the employer falsifies, or misrepresents, the completion of program activities.

E.    Exit or removal from program. An employer may voluntarily withdraw from the PAR program by providing notice to BWC.

F.    Resolution of complaints.

1.    Employer complaints are processed under the General Employer Complaint Policy.

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