|OhioBWC - Employer: EM capping|
In this program we will cap an individual employer's experience modifier (EM) to minimize the effects of a significant premium increase for employers that become penalty rated.
The EM cap will equal 100 percent of the previous year's published EM. The previous year's EM could be an individual EM or group EM if the employer was participating in a group-rating plan that year.
Example: An employer is in a maximum discount group for the 2015 policy year and gets the group EM of 0.47. In 2016 they're not renewed in a group, so the company would go to base rate. However, because the employer is eligible for EM capping, we'll cap the EM for the 2016 policy year at 0.94.
We will notify employers by mail in May of their EM cap eligibility. If you fail to comply with the requirements or do not wish to participate, we will calculate your premium rates using your uncapped EM for the policy year.