A revamped workers’ compensation billing system will offer a number of new flexible payment options for Ohio employers. As part of its move to a new prospective billing system, the Ohio Bureau of Workers’ Compensation (BWC) board of directors on April 24 approved a plan to allow private employers to pay for their annual workers’ compensation premiums in two, four, six or 12 installments.
Under the new system, businesses will be billed prior to receiving coverage instead of the previous system of billing employers after they have received coverage.
Businesses can expect to receive their first notice of estimated annual premium in early June for the 2015 policy year. Beginning July 1, businesses will pay an estimated premium for the upcoming coverage year and undergo a payroll “true-up” process after the policy year ends to ensure the proper premium was paid.
As part of the previously announced $1.2 billion premium credit to ease transition costs for employers, BWC will pay businesses’ previous six months coverage, or final payroll report, under the old system, as well as 1/6th of the policy year 2015 premium due. Therefore, their first payment under prospective billing won’t be due until August 31.
In addition to payment flexibility, the switch to prospective billing is expected to provide a number of benefits to Ohio employers, including an overall base rate reduction of 2.4 percent for private employers and 4 percent for public employers and increased ability for BWC to detect employer non-compliance and fraud.
BWC continues to offer free prospective billing seminars across the state to provide details and answer ques- tions about prospective billing.
For more information, visit bwc.ohio.gov.