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OhioBWC - Employer:  (Deductible Program Information) - Deductible Program Description

The Deductible Program

Overview
BWC's Deductible Program helps employers lower their premiums by offering an upfront premium discount in the form of a per claim deductible. It also encourages employers to focus on workplace health and safety to reduce injuries and illness.

Employers who effectively manage their workers’ compensation claims and related costs will see a financial benefit. However, if an employer does not manage claim costs, the deductible can exceed premium savings.

Eligibility requirements
Deductible levels
Annual aggregate stop loss limit
Deductible billing structure
Discount calculation
Application and enrollment
Renewals
Cancellation of participation
Compatibility with other BWC programs
Resources

Eligibility requirements
We will review all applications to determine eligibility and accept only those employers who qualify. To participate, your organization must:

  • Be a private, state-fund employer or a public employer taxing district;
  • Be current on all premium payments and deductible billings at the time you apply;
  • Be in good standing at the time you apply;
  • Have active coverage by the application deadline;
  • May not have cumulative lapses in coverage in excess of 40 days within the nine months preceding the application deadline for deductibles up to $10,000 an employer;
  • May not have cumulative lapses in coverage in excess of 15 days within the 5 years preceding the application deadline for deductible levels of $25,000 or more;
  • Provide reviewed or audited financial statements prepared in accordance with generally accepted accounting principles for the three most recent fiscal years for employers selecting deductibles of $25,000 or $50,000;
  • Provide audited financial statements prepared in accordance with generally accepted accounting principles for the three most recent fiscal years for employers selecting deductibles of $100,000 or $200,000;
  • Demonstrate financial strength and stability. Additional financial requirements may apply in certain circumstances.

Deductible levels
When you apply, choose a deductible level appropriate for your business. You will be responsible for claim costs up to the deductible level for any claim that occurs in the policy year of enrollment.
Deductible level Minimum premium requirements Additional information required
$500
$1,000
$2,500
$5,000
$10,000
The deductible level selected may not exceed 25 percent of an employer’s annual premium. None
$25,000
$50,000
The deductible level selected may not exceed 40 percent of an employer’s annual premium. Reviewed or audited financial statements prepared in accordance with generally accepted accounting principles for the three most recent fiscal years
$100,000
$200,000
The deductible level selected may not exceed 40 percent of an employer’s annual premium. Audited financial statements prepared in accordance with generally accepted accounting principles for the three most recent fiscal years

Annual aggregate stop loss limit
If you select a deductible level of $25,000 or more, you have the option of choosing an annual aggregate stop loss limit. This option allows you to cap your total deductible liability for the program year to three times the deductible amount. Selecting an annual aggregate stop loss limit will result in a reduced liability and reduced premium discount.

Deductible billing structure
We will pay claims costs in full. You will then reimburse us for any claim costs up to the deductible level you have chosen. We'll send you monthly bills for the claim costs that occur during the policy year of participation. We will continue to bill you until you've reached your selected deductible level. You must pay all deductible bills within 28 days of the invoice date. If you do not make timely payments, we will refer you to our collections department. You can pay online or mail it to us.

Discount calculation
We will determine your level of discount based on your chosen deductible level and National Council on Compensation Insurance (NCCI) hazard group. We determine the NCCI hazard group using your primary manual classification.

For base-rated employers, we will apply the discount for participation directly to the base rate established for the policy year. We will calculate experience-rated employers’ discounts after we establish the modified premium rate. We will do this before we calculate any other premium discounts. We will not include administrative costs and Disabled Workers’ Relief Fund assessments in the discount. Remember, we will include all claim costs in your experience-rate calculation.

Application and enrollment
You must submit an Application for Deductible Program (U-148) online, by fax or by mail. The application form includes the fax number and BWC mailing address. Employers who select a deductible amount of $25,000 or more must submit financial statements and proof of audit or review to the BWC employer programs unit by the enrollment deadline.
Ohio Bureau of Workers' Compensation
Attn: Employer programs
30 W. Spring St., 22nd floor
Columbus, OH 43215-2256

See appropriate rule below for specific deadlines.
Private, state-fund employers
Public employer taxing districts

Note: Employers found not eligible for their chosen deductible level may still be able to participate at a lower level. Employers who want to do that should indicate that by clicking Yes on the application.

Renewals
We will automatically renew eligible employers at their current deductible level. If employers want to change their deductible level, they may use the Update program info service offering during the enrollment period.

We will conduct mid-term reviews to determine continued eligibility. If an employer fails to meet program requirements, we can revoke eligibility for the second half of the policy year. If this happens, BWC will send a 30-day notice to the employer.

Cancellation of participation
Once we approve your participation and the policy year begins, you cannot withdraw or make changes to your deductible level. You must wait until the next policy year to make those changes.

To leave the program in the upcoming policy year, you may use the program information service offering online or send a request to the employer programs unit. You should withdraw during the next enrollment period.

Compatibility with other BWC programs
While participating in the Deductible Program, you should verify what other programs are compatible with it. You may participate in more than one program; however, only certain programs may be combined in the discount calculation. Use the compatibility chart found in Ohio Administrative Code 4123-17-74.

Questions or feedback
If you have questions or comments about the program, call our employer programs unit at 614-466-6773, or send an e-mail.


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