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BWC e-news - July 2010
BWC e-news - March 2010
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Ohio Private Employer Base Rates Fall to their Lowest Level in Two Decades

BWC has reached another milestone in setting fair, equitable and competitive workers’ compensation rates for Ohio employers. The BWC Board of Directors recently approved an overall premium rate decrease of 3.9 percent for private employers effective this month. With this reduction, Ohio’s private employer base rates are at their lowest level in the last two decades, and 35-percent lower than they were in policy year 2007.

In addition, base rates are now lower for more than half of Ohio’s 531 manual classifications, an overall 8.4 percent decrease in base rates since 2009. Because private employers pay for their workers’ compensation coverage six months in arrears, they will see this latest decrease in their January 2011 statements.

“By lowering Ohio’s base rates to levels not seen in at least 20 years, the majority of Ohio’s private employers are now seeing significant savings in their workers’ compensation costs. These funds can now be invested into their business operations to support future job growth and economic development in our state,” said BWC Administrator Marsha Ryan.

Led by its Board of Directors, BWC is in the third year of a comprehensive rate-reform effort to make certain the amount paid by each employer matches the risk that employer brings to the system.
 

BWC Board Sets Public Employer Rate Making Guidelines

The BWC Board of Directors has improved rate making accuracy and consistency for public employer taxing districts (PECs). The board modified two tables that impact experience-based rate adjustments for PECs. These changes take effect Jan. 1, 2011. The credibility table will have maximum value of 65 percent and will have lower eligibility requirements. This will allow smaller employers to earn adjustments based on their own claim experience. For those in group rating, the revised break-even factor table allows them to achieve a maximum discount of 59 percent.

The action aligns the PEC credibility table with that of private employers, which the BWC Board of Directors established earlier this year and which became effective July 1, 2010. BWC applies the break-even factor in conjunction with the credibility table to set rates for all PECs that reflect their individual risk level.
 

BWC Tops Subrogation Collection Record

For the second consecutive year, BWC has collected a record amount to recoup costs from work-related accidents caused by third parties. The process known as subrogation, allows BWC to collect past and future medical and compensation costs, paid to or on behalf of injured workers, where the work injury was caused by a third party.

In Fiscal Year (FY) 2010, BWC’s subrogation unit collected more than $22 million, compared to $19.4 million collected in FY09.

Common accidents caused by third parties often resulting in subrogation include:

  • Product malfunction;
  • Faulty design;
  • Dog bites;
  • Inadequate warning/premises liability;
  • Medical malpractice;
  • Safety device absent/inadequate;
  • Motor vehicle accidents.

BWC attributes much of the success in collecting these funds to its employees who, in examining claims, recognize the opportunity to recover State Insurance Fund dollars from at-fault third parties. The agency’s subrogation unit then takes action to negotiate collection of the subrogation lien. According to statute BWC is permitted to collect a proportional share of the net settlement after attorney fees and costs.

If you have workers’ compensation claim costs resulting from an accident caused by a third party, call BWC’s subrogation unit at 614-644-7410.
 

Board Strengthens Privacy Policies to Protect Employers and Injured Workers

The adoption of internal operational rules is providing added protection for employers and injured workers whose private information is stored in BWC databases. The BWC Board of Directors recently adopted rules that strengthen BWC’s handling of confidential personal information (CPI). The decision was in response to a statutory mandate and a directive from Governor Ted Strickland.

BWC’s new rule requires valid reasons and procedures for accessing CPI; catalogs confidentiality statutes; establishes criteria for giving BWC employees access to CPI; and sets procedures for documenting employee access. “BWC is committed to safeguarding the privacy of employers and injured workers by ensuring that their confidential information is accessed only by the appropriate personnel for legitimate reasons germane to their work duties,” said Administrator Marsha Ryan.

Under the Governor’s directive, all state agencies must adopt a detailed implementation plan that evaluates all personal information systems maintained by each agency. They must also develop policy and administrative rules governing the use and access of CPI. BWC’s new rules are now in effect.
 

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