Blog
Disappointed with Your 2020 Group Retro Refund?
You’re not alone. Now that BWC is releasing the first Group Retro checks (and a few assessments) for the 2020 policy year, many Ohio employers are underwhelmed by the results. In the earlier days of Group Retro, it wasn’t unheard of to see refunds over 50%. Spooner certainly had its heyday in the program, with some of our industry groups reaching close to the maximum return of 63%. In the last ten years, we’ve seen several factors begin to chip away at these big returns: increased loss development factors, fewer premium dollars in pools due to Premium Size Factor Reductions, and more recently – the move to a new reserve calculating system called ACES. The first two changes caused average returns to dip into the 40% ranges, but huge reserves from ACES delivered a sucker punch that left only five of the best performing groups with returns over 40%. Five of the hardest-hit pools will receive an assessment, which means paying back anywhere between 15-25% of their 2020 premiums to BWC. All other groups in the middle of the best and worst averaged returns of less than 24%. For some, that’s less than half of their historical performance average.
We’ve been tracking the impact of ACES on Group Retro for a while now, and several TPAs (including Spooner) have voiced their concerns to BWC regarding the dwindling returns. While the complaints were taken under advisement, BWC chose to make such minor changes to the reserve calculations that the 2020 Group Retro outlook remained bleak. There’s been very little talk of this outside of the Spooner newsletters and blog, but it’s unpleasant whether your business saw it coming or not.
Spooner may not be able to fix what’s wrong with Group Retro right now, but we can offer solutions. For businesses that don’t qualify for Group Rating, Group Retro isn’t necessarily your only alternative. We’d be happy to provide a claims review & savings analysis of the other programs available to your business, and help you try to find the right fit. Just fill out our contact form and one of our consultants will be in touch with you right away!
Update on Non-Compete Ban for 2025
Posted By Brandy King
December 16, 2024
Category: Non Compete, Employment Law, Non Solicitation Agreement, Ohio
FTC’s Non-Compete Ban Blocked, But Gray Area Remains In early 2023, the Federal Trade Commission (FTC) introduced and finalized a rule banning the use of non-competes. Employers, Chambers of Commerce and trade organizations rallied against the new rule claiming it was anti-employer, some going as far as calling it “blatantly awful.” As expected, the change was met with litigation and in August of 2024, the ban was struck down by a federal judge in Texas who claimed the FTC overstepped its authority by issuing the rule. A non-compete (or non-competition agreement) is an agreement in which the employee agrees not to engage in conduct or activities that could increase competition for their employer. These types of arrangements are prevalent in finance, healthcare, design, tech and all types of sales or business development roles. They’re meant to protect things like trade secrets, privileged info and client retention. Non-competes aren’t the same as non-solicitation clauses. These agreements err more toward not calling on your former clients in your new role. Here’s an example of differentiating between the two. Non-Compete: “Upon leaving ABC Company, you may not engage in a similar role for another insurance company within a 50-mile radius.” Non-Solicitation: “Upon leaving ABC Company, you may not solicit (contact/call on) clients of ABC Company in your new role with another insurance company.” For now, bo
Benefits Recap: Reminders for 2024 & Changes for 2025
Posted By Brandy King
December 16, 2024
Category: Contribution Limits, Employee Benefits, Retirement Plans, HSA, FSA, ACA
ACA Updates & Reminders It’s almost time for ACA reporting! There aren’t any major changes this year, but here are some items to be aware of for the 2024 tax year. The employee distribution deadline for the 1095-C forms is March 3, 2025. Since the 2023 tax year, the IRS requires all employers with more than ten (10) forms to report electronically. Employers can complete this either directly through the IRS website or through a third-party provider. Corrected forms are also required to be submitted electronically. If you’re submitting 10 or fewer forms, you can still file on paper. The deadline for this is February 28, 2025. The deadline for e-filing 1095-C and 1094-C forms to the IRS is March 31, 2025. Keep in mind that there could be additional ACA state reporting requirements for your organization with differing deadlines. The states to pay special attention to are California, New Jersey, Massachusetts, Rhode Island, and the District of Columbia. Updated penalties and affordability percentages. The ACA penalizes Applicable Large Employers (ALEs) that don’t offer what’s considered affordable coverage to full-time employees (FTEs). The affordability percentage is the maximum amount of an employee’s pay that “Employee Only” coverage can cost the employee in order to be considered affordable by ACA. For 2024, that percentage is 8.39%. The affordability percentage will jump to 9.02% for 2025, and the associated fines will
Additional Drug-Free Program Savings for Spooner Clients
Posted By Brandy King
December 16, 2024
Category: Dfsp, Drug Testing, Drug Screens, Ohio Bwc, Sur Program, Substance Abuse Recovery
Ohio’s recreational marijuana sales have started! Spooner clients who haven't had a recent review of their drug-free policy can take advantage of a no-cost, no-obligation policy review by First Connect Corporate Services. Our clients who need an update or new policy development will have access to discounted pricing when they mention Spooner. To take advantage of this offer, email your drug free policy to lisawade@firstconnectplus.com and identify your company as a Spooner client. Don’t forget, there is a reimbursement available to Ohio employers current on their workers’ compensation premium that will cover the costs of policy development or update, employee or supervisor training or Train the Trainer programs. Some drug testing is even included. For most employers, the reimbursement means zero out of pocket when using First Connect as the provider. Since 2004, First Connect has been a leading provider of drug free program development and training services in the state of Ohio. For more information, please visit their website at www.firstconnectplus.com or call 855.990.5500 and speak to Lisa
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28605 Ranney Parkway
Westlake, Ohio 44145
Phone: 440-249-5260 ext. 153
Hours: 8AM to 5PM
