Governor John Kasich recently joined BWC Administrator Steve Buehrer to announce a proposal of providing a $1 billion rebate to Ohio private and public employers. The proposal also plans to triple the BWC’s investments in worker safety grants. The BWC Board of Directors approved the proposal on May 30th.

Some specifics are available for the billion dollar dividend proposal:

1) The dividend will be 56% of gross premium paid.

2) Time period is the 2011 policy year for both public and private employers

3) Individual Retrospectively rated employers will receive 56% of the upfront premium paid to the BWC as well as 56% of the claim loss billed for the 2011 policy year as of May 31, 2013.  This applies to both private and public employers.

4) Group Retro employers will receive their dividends off of the net premium after the 12 month premium calculation adjustment scheduled to occur in August or September of this year.  Dividends for employers in the 2011 group retro programs will not be paid until the adjustment is calculated.

5) Employers participating in the deductible program will receive dividends based on the discounted blended premium, but no credit for claims costs billed and paid.

6) Employers who canceled coverage prior to April 1, 2013 will not be eligible for the dividend.

7)  Employers granted self-insurance before April 1, 2013 who paid premium in the 2011 policy year will be eligible for the dividend based on their billed premiums during the 2011 policy year.

8)  Rebates will be treated as a one-time payment and not subject to adjustments for audits, rate adjustments, appealed balances, changes in lapsed status, etc.

A representative from Spooner will be in contact with you and provide an estimate of what the refund will be for your company. It is still unclear when exactly the BWC will be releasing the refund checks.