Prospective Billing Information and Resources
Private employers: We're offering FREE seminars throughout the state to provide answers
and details about the upcoming switch to prospective billing. The seminars also
include the latest workplace safety updates and information to help you lower
costs and keep your workers safe on the job.
As an added bonus, by attending a seminar, your company
can receive safety training credit for some BWC programs. Details and registration
As part of our ongoing efforts to modernize our operations and
provide better service to Ohio's employers, we will be transitioning
to a new prospective billing system beginning in July 2015. Prospective
billing is an insurance industry standard practice that will enable us
to collect premiums before extending coverage. Currently,
Ohio employers pay for coverage they have already received.
When will this transition happen?
- July 1, 2015: for private employers
- Jan. 1, 2016: for public employers
Transition credits to cover the cost
BWC will cover the $1.2 billion transition cost with transition
credits for private and public employers. This means the switch from
a retrospective billing system to a prospective billing system will
come with no additional cost to Ohio employers.
In July 2015, we will provide an eight-month premium credit for
all active (non-lapsed) private state-fund employers. This credit
will cover the August 2015 payroll report (for January-June) and the
first two months of the 2015 policy year.
For public employers, the plan is to provide the equivalent of a
one-year transition credit in March 2016, when they receive their
2015 payroll report and 2016 invoice. The invoice will include a
50-percent credit for both the 2015 and 2016 premiums.
Rating plan and program deadline changes
In the near term, our switch to prospective billing also means we
are making significant changes to the private employer sign-up dates
for several rating plans and programs.
- Experience snapshot: Sept. 30
- The group-rating sign-up deadline is now the Monday prior to
Thanksgiving (starting in 2014 for policy year 2015).
- The deadline for group-retrospective rating,
individual-retrospective rating, the Deductible Program and One
Claim Program is now the last business day of January.
- The deadline to sign up for Destination: Excellence programs
is now the last business day of May.
Benefits of switching to prospective billing
As previously mentioned, switching to prospective billing brings
us in line with the industry standard used by nearly all insurance providers.
Other benefits of these changes include:
- An overall base-rate reduction of 2 percent for private employers
and 4 percent for public employers;
- Opportunities for more flexible payment options (one, two, four,
six or 12 installment payments);
- An increased ability for us to detect non-compliance and fraud,
which can provide long-term savings.
If you have questions, please send an email to our
prospective billing mailbox.
Private employer resources
Overview sheet for private employers (PDF)
Private employer presentation slides (PDF)
Private employer timeline (PDF)
Private employer experience-rating process (PDF)
Letter to private employers - September 2014 (PDF)
Letter to private employers - June 2014 (PDF)
Public employer resources
Overview sheet for public employers (PDF)
Public employer presentation slides (PDF)
Public employer timeline (PDF)
Public employer experience-rating process (PDF)
Letter to public employers - December 2014 (PDF)
Letter to public employers - June 2014 (PDF)
Prospective billing - frequently asked questions (PDF)
Letter to PEO clients - June 2014 (PDF)